Asia-Pacific markets traded higher on Friday following reports that Iran and Oman are drafting a protocol to 'monitor transit' through the Strait of Hormuz, raising hopes that the crucial oil-shipping waterway could partially reopen [1]. Kazem Gharibabadi, Iran's deputy foreign minister of legal and international affairs, stated that tanker traffic through the Strait 'should be supervised and coordinated' with both countries, according to Iranian state news agency IRNA [1].
Oil prices continued to surge in response to the news. U.S. crude futures jumped nearly 12% to $112.06 per barrel, while global benchmark Brent rose around 8% to $109.24. The spot price for current physical cargoes of Brent crude oil soared Thursday to $141.36, marking the highest level since the 2008 financial crisis, as reported by S&P Global [1].
Among Asia-Pacific markets, South Korea's Kospi led regional gains, rising 3.25%, with the small-cap Kosdaq up 2.15%. Japan's Nikkei 225 climbed 1.67%, and the broad-based Topix increased by 1.38%. Australian and Hong Kong markets were closed for the Easter weekend [1].
U.S. futures showed little movement, with S&P 500 futures flat, Nasdaq-100 futures down 0.07%, and Dow Jones Industrial Average futures up 9 points, or 0.02%. Overnight, U.S. markets experienced volatility amid rising oil prices, but major indexes ended little changed: the Dow declined 61.07 points (0.13%), the S&P 500 advanced 0.11%, and the Nasdaq Composite gained 0.18% [1].
CONCLUSION
Asia-Pacific equities rallied on optimism surrounding the potential reopening of the Strait of Hormuz, while oil prices spiked to levels not seen since 2008. Despite volatility, U.S. markets remained relatively stable. The developments signal significant market sensitivity to geopolitical progress in the region.