The world watched with bated breaths as US President threatened that "whole civilisation will die tonight” unless Iran opened the Strait of Hormuz with immediate effect.
Although the move saw condemnation from across the globe, yet it led to the two sparring countries ultimately reaching a much-anticipated ceasefire. Earlier on March 8, both countries agreed that for two weeks guaranteed safe passage would be allowed for maritime traffic through the Strait of Hormuz.
Although this does not signify the end of the war, yet it could be the beginning of the end. However, Iran has publicly stated that “this does not signify the termination of the war”. "Our hands remain upon the trigger, and should the slightest error be committed by the enemy, it shall be met with full force," Iran's Supreme National Security Council said.
However, this announcement was enough to bring a ray of hope to the Asian markets as oil prices finally dropped. Markets across Asia saw an upswing on Wednesday.
Oil prices fell significantly; the US benchmark used for calculating prices of oil from North America was down $16.56 (-16.56 percent) at $96.39 per barrel while Brent Crude was down $15.89 (-15.89 percent) at $93.38 per barrel.
In the equity markets, Japan's Nikkei 225 index was up 4.38 percent to 55,771.56 and South Korea's Kospi index gained 5.71 percent to 5,808.65.
“The return of buying interest in Japan’s stock market is likely to occur now that the fear of escalation has diminished,” according to Tokai Tokyo Securities prior to the Tokyo opening bell.
However, situations remain tense as conflict can arise at any moment. The Asian markets and businesses have already had to suffer a lot owing to this conflict.
We hope that in the future, this conflict reaches a strong position of deescalation so that the rest of the world can go back to rebuilding what has been lost so far.
Here’s hoping for a peaceful future.