Iran and the U.S. agree to a two-week ceasefire, Asian stocks surge across the board, and TSMC leaps to 1,940 yuan.

The United States and Iran have reached a two-week temporary ceasefire agreement, giving global financial markets some breathing room amid recent geopolitical tensions in the Middle East. The news directly drove international crude oil prices to fall by the largest amount in nearly six years. The Nikkei 225 rose nearly 5%, South Korea’s KOPSI index surged 5.5%, Taiwan’s weighted index jumped by 1,200 points, and Taiwan Semiconductor Manufacturing Co. (2330), dubbed the “Protecting-Country God Mountain” stock, hit a peak of 1,940 yuan. Although market risk appetite has been partially restored in the short term, the ceasefire is only a buffer and not a final peace treaty; analysts warn not to get ahead of oneself.

US and Iran agree to a two-week ceasefire; oil prices drop by the largest amount in six years

After the United States and Iran agreed to a two-week ceasefire, international oil prices responded sharply. WTI crude oil fell as much as 19%, and Brent crude oil also dropped by about 16%. This is mainly because the agreement allows crude oil to pass through the Strait of Hormuz safely again, easing market worries about disruptions to energy supplies. While the worst-case scenario has been temporarily avoided, reconstruction in the Middle East and long-term peace still require time. Before that, the crude oil price structure may still include a “war premium” (the added cost due to potential conflict risks).

Stocks across Asia surge broadly; TSMC leaps to 1,940 yuan

As oil prices declined, concerns about global “inflation pressure” eased somewhat, which in turn lifted global stock markets. The Nikkei 225 rose nearly 5%, South Korea’s KOPSI index surged 5.5%, Taiwan’s weighted index jumped by 1,200 points, and Taiwan Semiconductor Manufacturing Co. (2330) hit a peak of 1,940 yuan.

European and US stock index futures also rose by 2% to 5%. From a macroeconomic perspective, lower energy costs help companies rein in spending and ease the burden on consumers. This leads the market to expect economic momentum may stabilize, prompting funds to reallocate toward risk assets.

The ceasefire is only a buffer, not a final peace treaty; analysts urge caution

Although the two-week ceasefire provides some buffer for the market, it is not a final peace treaty. The outcome of subsequent US-Iran talks still has unknowns. In the short term, financial markets may swing on new political statements. Participants should continue to watch developments after the agreement expires, and how authorities interpret subsequent economic data. The current price action reflects only a temporary restoration of risk appetite—not the establishment of a long-term trend.

Tokyo-Mitsubishi Sumitomo Trust Asset Management’s Chief Strategist, Hiroyuki Ueno, said:

“For now, this is a relief for the market—the situation has calmed down. But whether things will go smoothly in the future remains to be seen, and investors shouldn’t be too quick to act.”

This article, “US and Iran agree to a two-week ceasefire; Asian stocks surge broadly; TSMC jumps to 1,940 yuan,” first appeared on Chain News ABMedia.