Asian Stocks Set to Rise as US-Iran Deal Eases Oil Supply Fears

Asian stocks are poised to open higher on Friday after a historic peace deal between the United States and Iran raised expectations that the Strait of Hormuz will reopen, restoring oil flows and easing global inflation concerns.

The agreement, announced late Thursday, marks a major diplomatic breakthrough that could end years of tension in the Middle East. For energy markets, the key implication is the potential resumption of normal tanker traffic through the Strait of Hormuz, a chokepoint through which about 20% of the world's oil passes. A reopening would add significant supply to the market, putting downward pressure on crude prices. Lower oil prices would in turn reduce input costs for businesses and ease consumer inflation, supporting central banks' efforts to slow the pace of rate hikes. For fuel traders, the deal could signal a shift from a risk-on to a risk-off environment for oil, with Brent and WTI likely to test lower support levels. Check NowPrice's fuel page for the latest Brent and WTI pricing to gauge market reaction.

Looking ahead, traders will focus on the implementation timeline of the deal and any verification mechanisms. Key data to watch include weekly US crude inventory reports and OPEC+ production figures, as the group may adjust output quotas in response to the changing supply landscape. The immediate market reaction will likely be a relief rally in equities and a sell-off in crude, but the sustainability of these moves depends on the speed and credibility of the Hormuz reopening.