{"id":62313,"date":"2026-05-24T21:38:35","date_gmt":"2026-05-25T01:38:35","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-as-us-iran-peace-progress-signals-reopening-of-strait-of-hormuz-nikkei-hits-record-65000\/62313\/"},"modified":"2026-05-24T21:38:35","modified_gmt":"2026-05-25T01:38:35","slug":"global-markets-surge-as-us-iran-peace-progress-signals-reopening-of-strait-of-hormuz-nikkei-hits-record-65000","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-as-us-iran-peace-progress-signals-reopening-of-strait-of-hormuz-nikkei-hits-record-65000\/62313\/","title":{"rendered":"Global Markets Surge as US-Iran Peace Progress Signals Reopening of Strait of Hormuz; Nikkei Hits Record 65,000"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Global markets rallied<\/strong> as <strong>Brent crude plunged over 5%<\/strong> following reports that a <strong>US-Iran peace deal<\/strong> is &quot;largely negotiated,&quot; potentially reopening the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li>Japan\u2019s <strong>Nikkei 225 (<a href=\"\/stock\/NI225\">NI225<\/a>)<\/strong> achieved a historic milestone, surging <strong>3.14%<\/strong> to close at <strong>65,324.90<\/strong>, marking its first-ever finish above the 65,000 level.<\/li>\n<li><strong>Singapore\u2019s Q1 GDP<\/strong> significantly outperformed expectations, growing <strong>1% quarter-on-quarter<\/strong>, compared to the estimated <strong>0.2%<\/strong>, prompting officials to maintain a steady monetary policy.<\/li>\n<li><strong>Petronas (<a href=\"\/stock\/PETR\">PETR<\/a>)<\/strong> confirmed a tragic maintenance accident at its <strong>FSO Sepat<\/strong> facility that resulted in <strong>three fatalities<\/strong>, even as broader energy markets faced downward pressure.<\/li>\n<li><strong>China\u2019s yuan fixing<\/strong> reached its highest level since <strong>February 2023<\/strong>, with the central bank setting the mid-point at <strong>6.8318<\/strong> amid a weakening US Dollar.<\/li>\n<\/ul>\n<h2>Geopolitical Breakthrough Drives Oil Lower<\/h2>\n<p>Energy markets experienced a sharp correction on Monday as prospects for a diplomatic breakthrough between the <strong>United States<\/strong> and <strong>Iran<\/strong> intensified. <strong>Brent crude<\/strong> fell more than <strong>5%<\/strong> following comments from <strong>President Donald Trump<\/strong> indicating that a deal to end the regional conflict and reopen the <strong>Strait of Hormuz<\/strong> is nearing finalization.<\/p>\n<p><em>The potential reopening of the vital shipping passage is expected to ease global inflationary pressures by restoring stable oil flows.<\/em> <strong>US Secretary of State Marco Rubio<\/strong> confirmed &quot;significant progress&quot; in negotiations, noting that the first stage of the agreement would focus on the full reopening of the strait to commercial shipping.<\/p>\n<h2>Asian Equities Hit Record Highs<\/h2>\n<p>The geopolitical optimism triggered a massive rally across Asian equity markets, led by a blockbuster performance in Japan. The <strong>Nikkei 225 (<a href=\"\/stock\/NI225\">NI225<\/a>)<\/strong> jumped <strong>3.14%<\/strong> to a record <strong>65,324.90<\/strong>, while the broader <strong>TOPIX (<a href=\"\/stock\/TOPIX\">TOPIX<\/a>)<\/strong> index also reached a new all-time high, advancing <strong>1.22%<\/strong> to <strong>3,939.82<\/strong>.<\/p>\n<p><em>Investor sentiment was further bolstered by strong gains in Taiwan shares, which climbed more than 2%.<\/em> US futures also signaled a positive open for Wall Street, with <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPX\">SPX<\/a>)<\/strong> and <strong>Nasdaq (<a href=\"\/stock\/IXIC\">IXIC<\/a>)<\/strong> futures rising <strong>0.7%<\/strong> and <strong>1.2%<\/strong> respectively, as the &quot;peace dividend&quot; fueled a rotation back into risk assets.<\/p>\n<h2>Singapore GDP Beats Estimates<\/h2>\n<p><strong>Singapore\u2019s economy<\/strong> showed unexpected resilience in the first quarter of 2026, with <strong>GDP growing 1%<\/strong> on a quarter-on-quarter basis. This figure blew past the <strong>0.2%<\/strong> growth projected by analysts, driven by strong performance in manufacturing and wholesale trade.<\/p>\n<p>A <strong>Singapore Central Bank (MAS)<\/strong> official reiterated that the existing monetary policy stance remains &quot;adequate,&quot; as economic projections and output gap analysis align with earlier expectations. Despite the positive data, officials warned that global financial conditions remain tight and could weigh on growth later in the year.<\/p>\n<h2>Corporate and Commodity Developments<\/h2>\n<p>In the corporate sector, <strong>Petronas (<a href=\"\/stock\/PETR\">PETR<\/a>)<\/strong> reported a fatal incident at the <strong>FSO Sepat<\/strong> unit off the coast of Terengganu. The company confirmed that <strong>three personnel died<\/strong> during lifeboat maintenance work, and an investigation into the cause is currently underway in coordination with Malaysian authorities.<\/p>\n<p>Meanwhile, <strong>South Korea<\/strong> continues its bid for a <strong>US$39.6 billion<\/strong> submarine deal with <strong>Canada<\/strong>. A South Korean Navy submarine, built by a consortium including <strong>Hanwha Ocean (<a href=\"\/stock\/042660\">042660<\/a>)<\/strong> and <strong>HD Hyundai Heavy Industries (<a href=\"\/stock\/329180\">329180<\/a>)<\/strong>, arrived in Victoria for joint drills to showcase its long-endurance capabilities.<\/p>\n<p>In commodities, <strong>China\u2019s coking coal<\/strong> contracts surged <strong>7.97%<\/strong> to <strong>1,266.5 yuan\/ton<\/strong>. The spike follows reports of a deadly coal mine explosion in China, which has raised immediate concerns regarding domestic supply stability despite the broader cooling of global energy prices.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Global markets rallied as Brent crude plunged over 5% following reports that a US-Iran peace deal is &quot;largely [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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