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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
President Donald Trump has announced an imminent agreement between the United States and Iran to permanently reopen the Strait of Hormuz without any transit tolls. This breakthrough follows the signing of a memorandum of understanding aimed at ending hostilities and securing global trade flows through the critical maritime chokepoint, with a formal signing ceremony scheduled for this Friday. Following the confirmation, major Asian benchmarks including the Nikkei 225 and Topix surged by more than 5% as geopolitical risk premiums evaporated.
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Sign InThis deal represents a paradigm shift in global energy security, as the Strait handles approximately 20% of the world's daily oil consumption according to U.S. Energy Information Administration (EIA) data. Compared to the 2019 tensions that spiked risk premiums, analysts expect this resolution to significantly lower shipping and maritime insurance costs. Global markets also reacted positively to improved trade prospects, coinciding with Chinese trade balance data which showed exports growing by 19.4% as of June 9, according to market data.
In the equity markets, Japanese index-linked instruments maintained elevated levels, with 1306.T closing at 412.2 JPY and 1330.T at 69,190 JPY (close June 12, 2026). Traders are now focused on the official signing this Friday as a primary catalyst for continued bullish momentum. Additionally, the market is monitoring upcoming U.S. CPI data, where a reading in line with the 4.2% forecast could further bolster risk appetite following this major diplomatic breakthrough.