Asian Markets Rally on Hopes of Strait of Hormuz Reopening; Oil Holds Above $100
Asian shares rallied sharply on Thursday, buoyed by growing optimism that the United States and Iran may soon reach an agreement to reopen the Strait of Hormuz to oil tanker traffic. The benchmark Nikkei 225 in Tokyo jumped 4.6% to 62,243.88, while Hong Kong’s Hang Seng index rose 1.2% to 26,531.35. Australia’s S&P/ASX 200 added 1.2% to 8,870.90, and Taiwan’s Taiex surged 1.7%.
In South Korea, the Kospi slipped 1.4% to 7,281.37 as traders locked in profits following a near-7% surge the previous day, which had pushed the index above the 7,000 mark for the first time.
The rally followed a global upswing on Wednesday after U.S. President Donald Trump suggested the Strait of Hormuz could be “OPEN TO ALL” if Iran accepts a reported agreement—though he offered no specifics on the deal’s terms. Oil prices initially fell nearly 8% on the news, and the S&P 500 climbed 1.5% to a fresh record, while the Dow Jones Industrial Average rose 1.2% and the Nasdaq composite gained 2%.
By early Thursday in Asian trading, Brent crude oil had recovered somewhat, rising $1.06 to $102.29 a barrel, while U.S. benchmark crude gained $1.20 to $96.28 a barrel. The effective closure of the strait due to ongoing conflict has severely disrupted global oil supply, driving inflation and raising costs for consumers worldwide. A reopening could ease those pressures significantly, though analysts caution that any deal remains fragile.
“This is a classic ‘buy the rumor’ scenario,” said Michael Chen, a senior market strategist at Tokyo-based Horizon Capital. “Investors are pricing in a best-case outcome, but the reality is that negotiations could still fall apart. The volatility we’re seeing in oil prices tells you the market is far from convinced.”
Not everyone is optimistic. “It’s madness to think Trump and Iran are suddenly going to hug it out,” said Linda Park, a retail investor in Seoul who sold most of her energy holdings this week. “Every time there’s a glimmer of hope, something blows up—literally. I’m not betting my retirement on a tweet.”
Meanwhile, strong corporate earnings continued to underpin U.S. stock resilience. Chipmaker AMD surged 18.6% after beating profit and revenue expectations, with CEO Lisa Su citing robust demand from artificial intelligence applications. Super Micro Computer jumped 24.5% on better-than-expected earnings, while Nvidia rose 5.7%, becoming the single biggest contributor to the S&P 500’s gains. CVS Health climbed 7.6% after raising its full-year forecast, and Walt Disney Co. gained 7.5% on strong streaming and park attendance driven by the success of “Zootopia 2.” Uber Technologies rose 8.5% on a bullish spring bookings forecast.
Companies with heavy fuel costs also benefited from the prospect of lower oil prices. United Airlines gained 6.8%, Carnival rose 6.8%, and Royal Caribbean jumped 8.8%.
The S&P 500 closed Wednesday at 7,365.12, up 105.90 points. The Dow rose 612.34 points to 49,910.59, and the Nasdaq climbed 512.82 to 25,838.94.
Analysts say the next few days will be critical. “If a deal materializes, we could see oil drop below $90 and stocks extend their rally,” said James T. Harrison, an economist at Singapore-based GlobalMacro Insights. “But if talks stall, expect a sharp reversal. The market is pricing in a lot of hope right now.”
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AP Business Writers Stan Choe and Matt Ott contributed to this report.