A last-minute diplomatic reversal halted U.S. military action against Iran. President Trump posted on Truth Social that he agreed to delay the planned attack by two weeks after Pakistan's Prime Minister Shehbaz Sharif and Army Chief General Asim Munier mediated. Iran's Foreign Minister Abbas Araghchi, on behalf of the Supreme National Security Council, declared that the country's armed forces would "cease defensive operations." Talks are set to begin in Islamabad within days.
Ceasefire Condition: Full Reopening of the Strait of Hormuz
Trump explicitly demanded that Iran "completely, immediately, and safely open the Strait of Hormuz." The world's most vital oil chokepoint, if reopened, would ease supply fears. Brent crude futures crashed below $95 per barrel, settling at $94.76, as markets quickly priced in restored flows. Yet gold diverged: spot gold climbed further to $4,800 per ounce. Josh Rubin, portfolio manager at Thornburg Investment Management, noted that lower energy prices provide a broad economic boost and more room for central banks to cut rates.
Asia-Pacific Stocks Rally; Taiwan Leads with 1,286-Point Surge
The ceasefire ignited a broad risk-on rally across Asia. South Korea's KOSPI soared 5.99%, while the Kosdaq gained nearly 5%. Japan's Nikkei 225 rose 1.8% and the Topix added 1.7%. Taiwan's weighted index soared 1,286 points, with TSMC (2330) surging TWD 80, or over 4%. Bitcoin briefly jumped to $72,700 as crypto joined the risk-asset rebound.
The two-week truce offers a temporary reprieve, but the trajectory of subsequent negotiations will determine whether the relief rally persists. Iran's compliance on the Strait of Hormuz and Washington's next moves remain key unknowns.