Why did oil prices drop and Asian stocks rise according to the news?

Oil dropped and Asian stocks edged up after President Donald Trump said he was holding off on fresh military strikes against Iran, boosting hopes for a deal that could end the war and revive energy flows through the Strait of Hormuz; Brent crude oil dropped 2.7% to around $109 a barrel following Trump’s statement that plans for a strike were called off and 'serious negotiations are now taking place.'

What is the current status of commercial shipping through the Strait of Hormuz, and what does that imply for energy markets?

The Strait of Hormuz remains effectively closed to commercial shipping, with tanker traffic reduced to a trickle, driving sharp swings in energy markets and prompting investors to brace for continued turbulence across oil and global equities until the Iran situation is resolved.

ChemBrief

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Oil Slips, Stocks in Asia Rise on Iran Optimism: Markets Wrap

May 18, 2026

Brent crude dropped 2.7% to $109 per barrel after President Trump paused strikes on Iran, boosting hopes for resumed energy flows through the Strait of Hormuz. Asian stocks rose on the optimism, though volatility persists until the standoff resolves.

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