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🇳🇬 Nigeria /Economy & Trade

Stocks rise, oil edges up as US, Iran agree to halt attacks

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Sources not specified Ongoing story
  • Asian stocks and oil prices rose Monday following reports of a US-Iran agreement to halt attacks.
  • Investor confidence remains fragile due to recent market volatility driven by the Middle East crisis and AI-driven tech bubble concerns.
  • The US and Iran plan further talks in Qatar, aiming to finalize a deal to end their conflict and reopen the Strait of Hormuz.

Asian stocks and oil prices saw an uptick on Monday, buoyed by reports that the United States and Iran have agreed to cease attacks on each other. This de-escalation follows a weekend of strikes that had threatened a fragile truce between the two nations.

Technical talks are slated to continue… Both sides will stand down for now and vessels can move freely

— A US officialDescribing the agreement between the US and Iran to halt attacks and allow free passage of vessels.

Investor sentiment, however, remains cautious. Last week's markets experienced significant volatility, swinging wildly due to the escalating Middle East crisis and growing concerns about a potential tech bubble fueled by the artificial intelligence boom. Despite the expectation of a finalized deal to end the conflict and reopen the vital Strait of Hormuz, the path has been marked by persistent tensions.

The US Central Command reported attacking 10 Iranian military targets over "continued Iranian aggression against commercial shipping" on Saturday. Iran claimed to have retaliated with strikes against US bases in Kuwait and Bahrain, actions both host nations denounced. Tensions were further inflamed by Oman's announcement of an alternative shipping route, which Iran views as a challenge to its control over passage through the strait.

Iran has been angered by Oman’s announcement of an alternative route through the strait that hugged the Omani shoreline. Iran insists on controlling passage through the vital strait, something it did not enjoy before the war.

— Article textExplaining Iran's reaction to Oman's alternative shipping route and its insistence on controlling passage through the Strait of Hormuz.

US media outlets, citing senior US officials, reported late Sunday that both countries had agreed to halt attacks and planned to meet in Qatar on Tuesday for further discussions. A US official indicated that technical talks would continue, allowing vessels to move freely. Meanwhile, Iran's foreign ministry announced on Monday that it had held its first meeting with Oman regarding the management of the waterway. President Donald Trump had previously reiterated threats of military action if Iranian strikes persisted.

Iran’s top diplomat warned on Sunday that any attempt by ships to bypass its preferred route would “increase tensions”.

— Article textHighlighting Iran's warning regarding attempts to bypass its preferred shipping route.
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Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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