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Oil prices fell another 3% on Thursday after the United States and Iran finalized an agreement aimed at ending their conflict and reopening the Strait of Hormuz, easing concerns over disruptions to global energy supplies.
Brent crude, the international benchmark, traded at $77.1 per barrel as of 6:10 a.m. GMT, while U.S. benchmark West Texas Intermediate (WTI) slipped to $74.3 per barrel.
Asian equities largely moved higher as investors welcomed signs of easing tensions in the Middle East. Japan's Nikkei 225 climbed 1.65% to close at a record 71,053.49 points, while South Korea's KOSPI gained 2.25% to finish at an all-time high of 9,063.84.
Meanwhile, in the other part of the region, Hong Kong's Hang Seng Index fell more than 2%, while China's Shanghai Composite edged down 0.3%.
In Europe, futures linked to the pan-European Stoxx 50 index were down 0.2%. U.S. stock futures pointed to a stronger open, with Nasdaq futures rising more than 1%.
Gold climbed 1% to stay above $4,300 per ounce, while silver advanced 1.3% to $68.8, recouping part of the previous session's decline. Palladium added 0.8% to $1,310 per ounce, while platinum advanced 0.6% to $1,740.
Cryptocurrencies retreated, with bitcoin falling 2.3% to $64,000 and ethereum losing 3% to trade at $1,730.
Investor sentiment received a boost on Wednesday after U.S. President Donald Trump and his Iranian counterpart finalized an agreement aimed at ending more than three months of conflict, reopening the Strait of Hormuz and restoring shipping through one of the world's most important energy corridors.
Pakistan Prime Minister Shehbaz Sharif later announced that Washington and Tehran had electronically signed the "Islamabad Memorandum of Understanding," which lays out a framework for ending hostilities and launching technical-level negotiations.
A formal signing ceremony is expected to be held on Friday, June 19, in Geneva, Switzerland.
Despite the easing geopolitical tensions, markets remained cautious as investors weighed the Federal Reserve's latest policy outlook. The U.S. central bank kept its benchmark interest rate unchanged at 3.5%-3.75%, in line with expectations, but updated forecasts pointed to a higher path for borrowing costs.
The Fed raised its year-end federal funds rate projection to 3.8% from 3.4% forecast in March, while lifting its 2027 and 2028 estimates to 3.6% and 3.4%, respectively. The revisions strengthened expectations that the central bank could raise rates in 2026, signaling that interest rates may remain elevated for longer than previously anticipated.
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