An interim agreement between the US and Iran has led to the reopening of the Strait of Hormuz, allowing maritime traffic to resume while diplomatic talks continue, according to FX Street.
DBS Group Research’s Chang Wei Liang highlighted this development as a key geopolitical event that temporarily reduces risks in one of the world's most critical oil transit chokepoints.
For Japanese markets, which rely heavily on energy imports passing through the Strait, this reopening offers some relief amid ongoing regional uncertainties affecting global supply chains.