Iran–Israel Ceasefire Turns Asian Markets Green
Markets across Asia surged on Tuesday after a temporary ceasefire was declared between Iran and Israel. The ceasefire, though fragile, triggered a wave of risk-on sentiment, pushing equity markets higher, sending oil prices sharply lower, and boosting hopes for monetary easing from the U.S. Federal Reserve.
Key Market Stats – Tuesday, June 25, 2025
| Market | Performance |
|---|---|
| 🇯🇵 Nikkei 225 (Japan) | +1.3% |
| 🇭🇰 Hang Seng (Hong Kong) | +1.8% |
| 🇨🇳 Shanghai Composite | +0.9% |
| 🇰🇷 KOSPI (South Korea) | +2.8% |
| 🇦🇺 S&P/ASX 200 (Australia) | +0.9% |
| 🇮🇳 Sensex (India) | +1.2% |
| Commodities & Currencies | Latest | Change |
|---|---|---|
| 🛢️ WTI Crude | $65.98 | ↓ -3.7% |
| 🛢️ Brent Crude | $68.20 | ↓ -3.3% |
| 💵 USD/JPY | 145.44 | ↓ from 146.15 |
| 💶 EUR/USD | 1.1604 | ↑ from 1.1578 |
| 📈 U.S. 10Y Treasury Yield | 4.33% | ↓ from 4.38% |
| U.S. Stock Indices | Close | Change |
|---|---|---|
| 📊 S&P 500 | 6,025.17 | +1% |
| 📊 Dow Jones | 42,581.78 | +0.9% |
| 📊 Nasdaq | 19,630.97 | +0.9% |
Educational Corner: Why Ceasefires Matter to Financial Markets
During periods of geopolitical conflict, investors typically flee to safe-haven assets such as gold, bonds, and the U.S. dollar. Equities and oil markets often experience volatility due to supply risks or economic uncertainty.
💡 A ceasefire, even if temporary, can reduce perceived risks, encouraging:
- Stock market rallies
- Oil price corrections
- Weakening of safe-haven currencies like the USD
- Strengthening of cyclical or growth-linked currencies like the EUR
Market Reactions: Ceasefire Effects in Focus
🌏 Asian Markets & Wall Street
- Markets soared after former President Trump announced a “comprehensive ceasefire” between Iran and Israel.
- Confidence surged across Nikkei, KOSPI, Shanghai, and ASX as investors bet on de-escalation.
- U.S. markets rallied Monday despite America’s initial military involvement, suggesting investor faith in a quick resolution.
🛢️ Oil Prices
- WTI crude dropped 3.7% on Tuesday, continuing from a 7.2% plunge Monday.
- Fears of Strait of Hormuz closure eased.
- Analysts cite Iran’s measured military response as a key reason for lowered supply risk.
💵 Currency Movements
- The yen weakened as demand for safe havens declined.
- The euro strengthened amid renewed optimism for the eurozone’s economic stability.
Read More: Global Markets React to Escalating Iran–Israel Conflict
🏦 Bonds & Monetary Policy
- Yields on U.S. Treasuries fell as Fed officials signaled support for a potential rate cut in the upcoming meeting.
- The Fed is monitoring the effects of Trump’s new tariffs and potential gasoline price shocks on inflation.
🧾 Corporate Watch: Tesla Soars, Hims & Hers Tumbles
- Tesla (+8.2%) led the charge after announcing autonomous taxi operations in Austin, Texas, reinvigorating innovation buzz.
- Hims & Hers (-34.6%) plummeted after its partnership with Novo Nordisk on weight-loss drug Wegovy was discontinued.
- Novo Nordisk (-5.5%) also declined on the news.
Outlook & Summary
The Iran–Israel ceasefire, despite ongoing uncertainties, provided a psychological boost to global markets:
✅ Stocks rose
📉 Oil tumbled
📉 Bond yields dropped
💵 Dollar softened
However, this rally’s sustainability depends on the durability of the ceasefire and Iran’s next moves.
If peace holds, markets may enter a period of steady growth. If not, volatility could return quickly.
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