Seoul Gazette - Oil plunges, stocks jump on US-Iran peace deal

The strait, through which roughly 20 percent of the world's crude oil supply normally transits, was effectively closed by Tehran after the US and Israeli strikes on Iran in late February, sending energy prices soaring.

The US and Iran confirmed a peace deal announced by Pakistan, with a signing ceremony to take place in Switzerland on Friday, ending three months of conflict that have revived fears of a prolonged inflation spike.

Crude prices shed about five percent, having surged above $110 soon after the conflict began.

European stock markets climbed in midday deals Monday, tracking gains in Asia, while dollar retreated.

Tokyo and Seoul stock markets soared around five percent thanks to another flood into tech firms, fuelled by last week's record-breaking $75 billion stock listing by Elon Musk's SpaceX.

Shanghai closed up more than one percent and Hong Kong advanced 0.7 percent.

Paris and Frankfurt were up around one percent, while London's gains were capped by declines in energy heavyweights BP and Shell as oil prices fell.

"Asian and European markets enjoyed a bounce on the news, but the scale of the advance wasn't as huge as one might have expected," said Russ Mould, investment director at AJ Bell.

"That's partially down to markets having already bounced back in recent weeks, but it is also because inflation fears won't suddenly disappear," he added.

Iran's Deputy Foreign Minister Kazem Gharibabadi said that the deal put an "immediate end" to the war and that talks on a "final agreement" would be held within two months.

The content of the agreement, which follows weeks of fraught negotiations and periodic threats from US President Donald Trump of new attacks despite a ceasefire agreed in April, remained unclear.

"The Deal with the Islamic Republic of Iran is now complete," Trump said on Sunday. "Ships of the World, start your engines. Let the oil flow!"

Elsewhere, the US Federal Reserve and the Bank of England are expected to leave their main interest rates unchanged this week, preferring to wait and see if inflation risks will quickly subside.

The Bank of Japan meanwhile is expected to increase borrowing costs, following a quarter-point rate increase by the European Central Bank last week.

- Key figures around 1100 GMT -

Brent North Sea Crude: DOWN 4.8 percent at $83.09 a barrel

West Texas Intermediate: DOWN 5.2 percent at $80.45 a barrel

London - FTSE 100: UP 0.1 percent at 10,480.81 points

Paris - CAC 40: UP 1.1 percent at 8,444.81

Frankfurt - DAX: UP 1.3 percent at 24,944.50

Tokyo - Nikkei 225: UP 5.0 percent at 69,317.50 (close)

Hong Kong - Hang Seng Index: UP 0.7 percent at 24,892.18 (close)

Shanghai - Composite: UP 1.6 percent at 4,096.47 (close)

New York - Dow: UP 0.7 percent at 51,202.26 (close)

Euro/dollar: UP at $1.1612 from $1.1577 on Friday

Pound/dollar: UP at $1.3428 from $1.3416

Dollar/yen: DOWN at 160.13 yen from 160.23 yen

Euro/pound: UP at 86.51 pence from 86.27 pence

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Y.Wi--SG