The Asia-Pacific region's stock markets rallied on Monday after US President Donald Trump hinted at a potential agreement to resolve the ongoing conflict between the US and Iran. This development sent oil prices plummeting, while risk assets surged across the board.
The Strait of Hormuz, a critical energy chokepoint that handles around 20% of global oil supply daily, is reportedly set for resumed shipments following the negotiations. A comprehensive agreement between the two nations could be imminent, as indicated by Trump's recent comments.
Japan's Nikkei 225 and South Korea's Kospi indices both posted significant gains in response to the news. Oil prices, which have historically been inversely correlated with equity sentiment during this conflict, fell accordingly.
BTC has also benefited from the optimistic market mood, surging around 5% to reclaim levels near $77K. However, traders are advised to exercise caution due to the cryptocurrency's volatility in response to geopolitical events.