Asia Markets Rally as Oil Plunges on Geopolitical De-escalation Signals

Asian equities reversed earlier losses amid a sharp 6.4% drop in U.S. crude oil prices, driven by speculation that escalating tensions with Iran may be nearing a resolution. The S&P 500 rose 1.8%, while volatility index VIX fell 12.3%.

• CL=F fell 6.4% to $72.10 per barrel following geopolitical optimism
• Nikkei 225 rose 2.6%, KOSPI gained 2.1%, and ASX 200 advanced 1.9%
• S&P 500 increased 1.8%, with VIX dropping 12.3% to 14.8
• Energy stocks (XOM, CVX) rose 4.7%–5.3% on lower risk premiums
• Defense stocks (LMT, RTX) declined 1.4%–2.1% as conflict risks eased
• Market repricing reflects reduced risk premium on energy and security assets