US and Iran Announce Agreement to Open Strait of Hormuz, Spurring Global Market Optimism

The U.S. and Iran signed a bilateral agreement on May 26, 2026, to ensure the free flow of maritime traffic through the Strait of Hormuz. The deal, brokered through a series of high-level talks in Vienna, included commitments from both sides to avoid military action in the region. The agreement was announced jointly by U.S. Secretary of State Antony Blinken and Iranian Foreign Minister Hossein Amir-Abdollahian. Asian stock markets, particularly in Japan, South Korea, and India, saw significant gains following the announcement. The Nikkei 225 rose 2.3%, the KOSPI gained 1.8%, and the Nifty 50 increased by 1.5%. The deal was viewed as a major step toward stabilizing the Middle East and reducing the risk of supply disruptions in global oil markets. While the agreement was widely welcomed by investors, some analysts expressed caution, noting that the long-term success of the deal would depend on sustained diplomatic engagement and adherence to the terms by both parties.