Global equity markets rallied following the announcement of the reopening of the Strait of Hormuz, as easing geopolitical tensions lifted risk sentiment across regions. In the U.S., the Dow Jones Industrial Average surged about 1.8%, while the S&P 500 and Nasdaq Composite gained over 1% each, supported by a pullback in oil prices.
European markets also closed higher during the period, tracking the global risk-on sentiment, while bond yields softened and the U.S. dollar weakened against major currencies. Germany’s DAX climbed roughly 2.2%, while France’s CAC 40 and Spain’s IBEX 35 gained 1.9-2%. The UK’s FTSE 100 also ended higher, though with a relatively modest rise of about 0.7%, weighed down by declines in oil majors as crude prices fell sharply.
Asian markets, however, closed mixed, reflecting cautious optimism. In India, benchmark indices held firm, with the Nifty 50 staying above the 24,350 mark and the BSE Sensex posting modest gains, closing at 78,493, both rising around 0.6%, supported by relief for oil-importing economies. However, Japan’s Nikkei 225 showed relative resilience, dropping 1.75% while Hong Kong’s Hang Seng Index declined about 0.9%. China’s Shanghai Composite and Australia’s S&P/ASX 200 slipped marginally by around 0.1%, indicating profit booking and lingering uncertainty over the durability of the ceasefire. Notably, most Asian markets had already closed before Iran’s formal announcement that the Strait was “completely open” during the ceasefire, limiting the immediate reflection of the development in closing prices.
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