Nikkei 225 Surges 5.4% on U.S.-Iran Ceasefire
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- Nikkei 225 jumped 5.39% to close at 56,308.42, gaining 2,878.86 points — the third-largest point gain in the index's history — and reclaimed the 55,000 level for the first time in three weeks.
- Yen strengthened to around ¥158.7 per dollar in the morning before easing to ¥158.1 in the afternoon, while Japanese government bonds also rallied.
- West Texas Intermediate crude plunged from $116 per barrel to below $95 after the ceasefire announcement, though it remains up 39% from pre-conflict levels.
- Trump announced the two-week suspension of attacks on Truth Social, conditioning it on Iran's 'COMPLETE, IMMEDIATE, and SAFE OPENING' of the Strait of Hormuz, less than two hours before his own deadline.
- Iranian Foreign Minister Seyed Abbas Araghchi confirmed that safe passage through the Strait of Hormuz would be possible for two weeks through 'coordination with Iran's Armed Forces and with due consideration of technical limitations.'
- Investors and analysts expressed doubt about the durability of the truce, with the source noting skepticism as the article cut off.
Why it matters: A two-week truce cut Japan's main benchmark into record-territory gains and shaved roughly $21 off the price of a barrel of crude in a single session, but the ceasefire is conditional, narrowly scoped, and already being questioned by market participants — meaning the relief rally is built on a diplomatic foundation that could unravel before it expires.
