Stock markets in Japan and South Korea surged on Monday after the United States and Iran reached a framework agreement that includes the reopening of the Strait of Hormuz, easing concerns over global energy supplies.
Japan's benchmark Nikkei 225 index rose 5.3% in the two hours after trading began, while South Korea's KOSPI gained 5%.
Shares also rose in China and Hong Kong, though less strongly. The Shanghai Composite was up 1.1% around 30 minutes after trading began, while Hong Kong's Hang Seng Index gained 0.8%.
Oil prices fell sharply as traders reacted to the prospect of renewed shipping through the strategic waterway. Brent crude for August delivery was down about 4.2% at $83.60 a barrel (159 litres) in early trading.
According to US President Donald Trump, the framework agreement provides for the full reopening of the Strait of Hormuz after the deal is signed on Friday.
The waterway, which was closed during the Iran war, is a vital route for exports of oil and liquefied natural gas from the resource-rich Gulf region.
