{"id":63346,"date":"2026-06-17T21:38:16","date_gmt":"2026-06-18T01:38:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-peace-deal-triggers-global-oil-slide-asian-markets-react-to-currency-shifts\/63346\/"},"modified":"2026-06-17T21:38:16","modified_gmt":"2026-06-18T01:38:16","slug":"us-iran-peace-deal-triggers-global-oil-slide-asian-markets-react-to-currency-shifts","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-peace-deal-triggers-global-oil-slide-asian-markets-react-to-currency-shifts\/63346\/","title":{"rendered":"US-Iran Peace Deal Triggers Global Oil Slide; Asian Markets React to Currency Shifts"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Global oil benchmarks Brent and WTI fell by $1.03 and $1.13 per barrel respectively<\/strong> following the announcement of a landmark <strong>US-Iran peace deal<\/strong> and the immediate reopening of the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>The People\u2019s Bank of China (PBOC)<\/strong> weakened the yuan reference rate to <strong>6.8130<\/strong>, a significant shift from the prior close of 6.7630, signaling a managed adjustment amid the shifting geopolitical landscape.<\/li>\n<li><strong>South Korea has eliminated tariffs on LNG and LPG<\/strong> through a new quota scheme aimed at curbing domestic inflation and stabilizing energy costs for households and industry.<\/li>\n<li><strong>Japan\u2019s Ministry of Finance issued 2.8 trillion yen<\/strong> in Treasury discount bills as the nation navigates rising yields and a hawkish shift in central bank policy.<\/li>\n<\/ul>\n<h2>US-Iran Peace Deal Reopens Global Energy Artery<\/h2>\n<p>The global energy market experienced a significant relief rally as <strong>US President Donald Trump<\/strong> and Iranian officials signed a peace agreement to end months of hostilities. A central component of the deal is the <strong>immediate reopening of the Strait of Hormuz<\/strong>, a critical maritime chokepoint that previously carried roughly one-fifth of the world&#39;s petroleum liquids.<\/p>\n<p><em>Market analysts noted that the removal of the geopolitical risk premium was the primary driver for the price drop.<\/em> <strong>Brent crude<\/strong> and <strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">West Texas Intermediate<\/a> (WTI)<\/strong> futures both retreated as the prospect of normalized Iranian oil exports and secure shipping lanes returned to the forefront. The deal, mediated by Pakistan, includes a <strong>60-day ceasefire extension<\/strong> to allow for further negotiations regarding Iran&#39;s nuclear program and long-term sanctions relief.<\/p>\n<h2>PBOC Adjusts Yuan Midpoint Amid Regional Shifts<\/h2>\n<p>The <strong>People\u2019s Bank of China (PBOC)<\/strong> set the daily yuan reference rate at <strong>6.8130<\/strong> on Thursday morning, representing a notable weakening from the previous session&#39;s close of <strong>6.7630<\/strong>. This adjustment comes as the US dollar&#39;s status as a safe-haven asset faces pressure from the de-escalation in the Middle East.<\/p>\n<p>In equity markets, Hong Kong-listed shares showed a mixed start. <strong>CK Hutchison (<a href=\"\/stock\/0001\">0001<\/a>)<\/strong> shares were positioned to open up <strong>1.1%<\/strong>, benefiting from improved global trade sentiment. Conversely, tech giant <strong>Tencent (<a href=\"\/stock\/0700\">0700<\/a>)<\/strong> was set to open down <strong>1.2%<\/strong>, despite the company&#39;s ongoing aggressive share buyback program, which saw it repurchase <strong>1.118 million shares<\/strong> just a day prior.<\/p>\n<h2>South Korea and Japan Maneuver to Combat Inflation<\/h2>\n<p>To shield its economy from the &quot;oil shock&quot; of early 2026, <strong>South Korea<\/strong> has officially moved to apply <strong>zero tariffs on Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG)<\/strong>. The Ministry of Economy and Finance announced that the 0% quota rate will apply through the second half of the year, effectively waiving the previous 1-2% duties to lower utility and transportation costs.<\/p>\n<p>Meanwhile, the <strong>Japanese government<\/strong> issued <strong>2.8 trillion yen ($17.8 billion)<\/strong> in Treasury discount bills. This issuance occurs as <strong>Japanese Government Bond (JGB)<\/strong> yields face upward pressure following hawkish signals from the <strong>Bank of Japan<\/strong>, which is widely expected to raise its key interest rate to <strong>1.0%<\/strong> to combat a weak yen and persistent wholesale inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Global oil benchmarks Brent and WTI fell by $1.03 and $1.13 per barrel respectively following the announcement of 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