Global oil prices prolonged their downward trend while equity markets surged on Wednesday, sparked by optimism for a diplomatic resolution to the Iran war and the eventual unblocking of the Strait of Hormuz. Simultaneously, tech sector momentum pushed Samsung past a historic $1 trillion market valuation.
Investors responded favorably to U.S. President Donald Trump’s decision to temporarily halt naval escort operations aimed at freeing stranded vessels in the vital shipping lane, which had previously drawn retaliatory strikes from Iran and jeopardized an unstable ceasefire.
The U.S. president, who had previously issued a stern warning that Iran would be “blown off the face of the Earth” if American vessels were targeted, adopted a noticeably more cooperative stance on Tuesday.
”Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” he wrote in a social media post.
Trump attributed the pause to “the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran,” noting that the decision followed a request from Pakistan, which is acting as a mediator. Despite the operational pause, the U.S. naval blockade of Iranian ports persists.
The announcement closely followed statements from Secretary of State Marco Rubio, who confirmed that the offensive phase of the American military campaign, dubbed “Operation Epic Fury,” had drawn to a close.
”The operation is over — Epic Fury — as the president notified Congress. We’re done with that stage of it,” Rubio told reporters at the White House.
Meanwhile, Pentagon Chief Pete Hegseth reiterated that the United States was “not looking for a fight,” but cautioned that any future hostilities would be met with “overwhelming and devastating” force.
Crude prices tumbled roughly 4% on Tuesday and continued their decline into Wednesday, with West Texas Intermediate briefly slipping below the $100-per-barrel mark.
The drop in energy costs energized equity markets, building on consecutive record-breaking sessions for the S&P 500 and Nasdaq that were propelled by the technology sector. Major Asian markets—including Hong Kong, Shanghai, Sydney, Wellington, Taipei, Manila, and Jakarta—all traded higher.
Fiona Cincotta, a senior market analyst at City Index, observed that market participants drew confidence from President Trump’s remarks despite ongoing shipping complications, noting that active diplomatic channels provided additional reassurance.
She added that robust U.S. corporate earnings, which largely aligned with market consensus, further stimulated investor risk appetite. However, Cincotta warned that market sentiment remains fragile, as an extended closure of the Strait of Hormuz could present severe operational obstacles, even for American corporations.
South Korea’s Kospi index led regional gains, spiking by over 5% to breach the 7,000-point threshold for the first time in history. The rally was spearheaded by a monumental surge from Samsung, which jumped as much as 12% to cross a $1 trillion market capitalization.
The milestone, driven by insatiable global demand for its artificial intelligence chips, makes Samsung only the second Asian enterprise to achieve this valuation, following Taiwan’s TSMC.
In tandem with the rally, rival chipmaker SK hynix climbed approximately 10%. Boosted by the ongoing artificial intelligence expansion, Samsung’s shares have skyrocketed by nearly 300% over the past year, serving as a powerful catalyst for South Korea’s economic growth.