Asian markets rise, oil slumps after U.S. Iran ceasefire

July 27, 2026 (MLN): Asian markets traded higher on Monday as easing tensions between the United States and Iran boosted investor confidence and triggered a sharp decline in oil prices, while attention shifted to a busy week of corporate earnings and the U.S. Federal Reserve's policy decision.

Japan's Nikkei 225 gained 0.24%, while the broader Topix index rose 0.60%. South Korea's Kospi advanced 0.44%, and the small-cap Kosdaq climbed 1.49%. Australia's benchmark S&P/ASX 200 added 0.97%, according to CNBC.

The improvement in market sentiment followed a pause in fighting between the U.S. and Iran over the weekend, reducing concerns over potential disruptions to global oil supplies.

Showing the easing geopolitical risks, Brent crude futures for September delivery fell 4.88% to around $92 per barrel, while U.S. West Texas Intermediate (WTI) crude declined more than 5% to $84.84 per barrel.

U.S. stock futures also pointed to a stronger open, with Dow Jones Industrial Average futures rising 244 points, or 0.5%. S&P 500 futures gained 0.6%, while Nasdaq 100 futures advanced 1.2%.

Despite the cooling tensions in the Middle East, geopolitical uncertainty persisted after Ukraine reportedly struck an Iranian commercial vessel in the Caspian Sea, prompting Tehran to describe the attack as a "hostile and criminal act."

Investors are now preparing for a pivotal week on Wall Street, with quarterly earnings from major technology companies including Amazon, Apple, Meta Platforms, and Microsoft expected to shape sentiment toward artificial intelligence-related spending after Alphabet's recent results raised fresh concerns.

Markets are also awaiting the U.S. Federal Reserve's interest rate decision on Wednesday. While the consensus expects the central bank to leave rates unchanged this week before a possible increase later in the year, investors continue to price in the possibility of a 25-basis-point rate hike at the upcoming meeting.

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