March 25, New Delhi - Stock prices rose and oil prices fell today, following reports that the U.S. is seeking a month-long ceasefire in its war with Iran and has put forward a proposal.
S&P 500 futures rose by 0.9% in the morning session in Asia, while European futures rose by 1.2%, and Brent crude futures fell by about 6% to $98.30 per barrel.
Equity markets in Australia, South Korea, and Japan gained roughly 2% in the morning trade.
Brent crude prices have risen by 35% since the start of the conflict and are hovering near the $100-per-barrel mark, which is already causing economic strain for buyers in Asia who are paying higher prices for jet fuel and diesel.
Markets reacted after Iran, in a message circulated by the International Maritime Organization, assured safe passage to "non-hostile vessels" passing through the strait, a key gateway for one-fifth of the world's oil supply.
Iran had also stated in recent days that it was not targeting friendly nations, although many vessels have avoided the route as insurance companies remain reluctant to take risks.