Low angle view of tall buildings in Tokyo, Japan, showcasing diverse architectural styles
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Asia-Pacific markets were set to open higher Wednesday after U.S. President Donald Trump said he had agreed to suspend planned attacks on Iranian infrastructure for two weeks.
The move was “subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz,” he wrote on Truth Social.
Iranian Foreign Minister Abbas Araghchi in a post on X on behalf of the country’s Supreme National Security Council said Tehran’s armed forces will “cease their defensive operations.“
Trump noted the 2-week ceasefire was subject to Iran agreeing to a complete, immediate and safe opening of the Strait of Hormuz. Araghchi said that safe passage via Hormuz Strait will be possible via coordination with Iran’s armed forces for the next two weeks.
The U.S. has received a 10-point proposal from Iran that is a workable basis for negotiations, Trump said.
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U.S. crude oil prices plunged on the news. The West Texas Intermediate contract for May delivery fell more than 16% to $94.23 per barrel by 7:15 p.m. ET.
Japan’s Nikkei 225 was poised to gain, with the Chicago contract at 56,040 and its Osaka counterpart last trading at 54,040 compared to the index’s previous close of 53,429.56.
Hong Kong markets were also set to jump as they resume trading following holiday. The Hang Seng Index futures were at 25,233 compared to its last close at 25,116.53.
Futures tied to the Dow Jones Industrial Average rose by 718 points, or 1.5%. S&P 500 futures added 1.6%, and Nasdaq 100 futures climbed 1.7%.
Overnight in the U.S., the S&P 500 inched up 0.08% and closed at 6,616.85, while the Nasdaq Composite advanced 0.10% to settle at 22,017.85. The Dow Jones Industrial Average shed 85.42 points, or 0.18%, closing at 46,584.46.
—CNBC’s Sean Conlon and Lisa Kailai Han contributed to this report.