{"id":65906,"date":"2026-08-03T20:08:17","date_gmt":"2026-08-04T00:08:17","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases\/65906\/"},"modified":"2026-08-03T20:08:17","modified_gmt":"2026-08-04T00:08:17","slug":"global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases\/65906\/","title":{"rendered":"Global Markets Rally as Trump Signals Iran Diplomacy; South Korea Inflation Eases"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases\/65906\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases\/65906\/#Geopolitical_De-escalation_Drives_Market_Optimism\" >Geopolitical De-escalation Drives Market Optimism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases\/65906\/#South_Korea_Inflation_Cools_More_Than_Expected\" >South Korea Inflation Cools More Than Expected<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases\/65906\/#Japans_Monetary_Base_Continues_to_Shrink\" >Japan\u2019s Monetary Base Continues to Shrink<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases\/65906\/#Maritime_Security_Risks_Persist_in_the_Middle_East\" >Maritime Security Risks Persist in the Middle East<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-signals-iran-diplomacy-south-korea-inflation-eases\/65906\/#Australian_Markets_Await_Local_Lead\" >Australian Markets Await Local Lead<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>U.S. equity markets surged<\/strong> and <strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> plunged over 5%<\/strong> after President Donald Trump signaled a return to diplomacy with Iran, canceling planned military strikes.<\/li>\n<li><strong>South Korea&#39;s consumer inflation slowed to 2.8%<\/strong> in July, falling below the 3% threshold for the first time in three months and beating market expectations.<\/li>\n<li><strong>Japan&#39;s monetary base contracted by 13.8%<\/strong> year-on-year in July, reflecting the Bank of Japan\u2019s continued shift away from ultra-accommodative policy.<\/li>\n<li><strong>Maritime tensions remain high<\/strong> near the Strait of Hormuz following reports from the UKMTO of a cargo vessel being struck by an &quot;unknown projectile&quot; northeast of Oman.<\/li>\n<li><strong>Australian stock futures remained flat<\/strong> despite a strong lead from Wall Street, as local investors weighed regional geopolitical risks against the global rally.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_De-escalation_Drives_Market_Optimism\"><\/span>Geopolitical De-escalation Drives Market Optimism<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Global financial markets saw a significant shift in sentiment as <strong>President Donald Trump<\/strong> announced he had called off &quot;massive&quot; military strikes against Iran. The decision, reportedly made at the request of Gulf allies including <strong>Saudi Arabia<\/strong> and the <strong>UAE<\/strong>, has paved the way for a new round of diplomatic negotiations scheduled to begin this week.<\/p>\n<p>The prospect of a diplomatic resolution to the five-month-old conflict sent <strong>Brent crude<\/strong> and <strong>West Texas Intermediate (WTI)<\/strong> prices tumbling by more than <strong>5%<\/strong>, settling near <strong>$83.50<\/strong> and <strong>$80.70<\/strong> per barrel, respectively. This relief in energy costs fueled a broad rally on Wall Street, with the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (<a href=\"\/stock\/DJI\">DJI<\/a>)<\/strong> rising 1.32%, the <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> gaining 1.5%, and the <strong>Nasdaq Composite (<a href=\"\/stock\/IXIC\">IXIC<\/a>)<\/strong> advancing 2.1%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"South_Korea_Inflation_Cools_More_Than_Expected\"><\/span>South Korea Inflation Cools More Than Expected<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In Asia, <strong>South Korea\u2019s Ministry of Data and Statistics<\/strong> reported that consumer price inflation eased to <strong>2.8%<\/strong> in July, down from <strong>3.2%<\/strong> in June. This reading was lower than the <strong>3.0%<\/strong> median estimate and marks the slowest pace of price growth since April.<\/p>\n<p>While headline inflation cooled due to a temporary dip in oil prices and government stabilization measures, <strong>core inflation<\/strong>\u2014which excludes volatile food and energy\u2014picked up slightly to <strong>2.6%<\/strong>. <em>Analysts suggest that while the headline figure offers relief, underlying price pressures remain stable, keeping the Bank of Korea on alert for potential future interest rate adjustments.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Japans_Monetary_Base_Continues_to_Shrink\"><\/span>Japan\u2019s Monetary Base Continues to Shrink<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Bank of Japan<\/strong> reported a <strong>13.8%<\/strong> year-on-year decline in the country\u2019s monetary base for July, following a <strong>13.7%<\/strong> drop in June. The end-period monetary base stood at <strong>\u00a5557.6 trillion<\/strong>, down from <strong>\u00a5560.0 trillion<\/strong> the previous month.<\/p>\n<p>This contraction aligns with the central bank&#39;s broader strategy to normalize monetary policy after decades of stimulus. <em>The move comes as Governor Kazuo Ueda signals growing concerns about inflation overshooting the 2% target, even as the bank recently held its benchmark rate at 1.0%.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Maritime_Security_Risks_Persist_in_the_Middle_East\"><\/span>Maritime Security Risks Persist in the Middle East<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the diplomatic overtures from Washington, the <strong>United Kingdom Maritime Trade Operations (UKMTO)<\/strong> issued a warning regarding an incident <strong>20 nautical miles northeast of Al Khasab, Oman<\/strong>. A cargo vessel reported being hit by an &quot;unknown projectile,&quot; though the crew was reported safe.<\/p>\n<p>This incident follows several reports of explosions and &quot;splashes&quot; near tankers in the <strong>Strait of Hormuz<\/strong> over the weekend. <em>The continued volatility in this critical shipping corridor, through which one-fifth of global oil consumption passes, remains a primary concern for energy traders and maritime insurers.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Australian_Markets_Await_Local_Lead\"><\/span>Australian Markets Await Local Lead<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>S&amp;P\/ASX 200 (<a href=\"\/stock\/XJO\">XJO<\/a>)<\/strong> is expected to open flat despite the positive momentum from U.S. markets. Australian investors are navigating a complex landscape of falling commodity prices\u2014which can weigh on the local mining and energy sectors\u2014and the broader global &quot;risk-on&quot; sentiment.<\/p>\n<p>The benchmark index is coming off a <strong>0.5%<\/strong> gain and has risen in eight of its past ten sessions. <em>Market participants are now looking toward upcoming domestic economic data and the potential impact of a stronger Japanese yen on regional carry trades.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. equity markets surged and oil prices plunged over 5% after President Donald Trump signaled a return to [&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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