HONG KONG, May 6: Oil prices extended losses and stocks rallied Wednesday on fresh hopes for an end to the Iran war and the reopening of the Strait of Hormuz, while Samsung blasted past the $1 trillion valuation mark as the AI tech boom continued apace.
Investors welcomed Donald Trump’s decision to pause efforts to help stranded ships through the crucial waterway, which drew Iranian attacks, threatening an already fragile ceasefire.
The US president, who had been quoted as warning that Iran would be “blown off the face of the Earth” if it attacked US ships, appeared to take a more conciliatory tone 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.
He cited “the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran” for the decision, adding that it came at the request of mediator Pakistan.
The US blockade of Iranian ports remained, however. The announcement came hours after Secretary of State Marco Rubio said the offensive side of the US campaign, called “Operation Epic Fury”, had concluded. “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.
Pentagon chief Pete Hegseth had said the United States was “not looking for a fight”, but warned attacks would face “overwhelming and devastating” force.
Oil prices sank around four percent Tuesday, and on Wednesday they continued to fall, with West Texas Intermediate briefly dipping below $100 a barrel.
The cheaper oil prices provided support to equities, with investors taking their cue from another record day for the S&P 500 and Nasdaq, fuelled again by tech firms.
Hong Kong, Shanghai, Sydney, Wellington, Taipei, Manila and Jakarta were all up.
“Investors are also finding some reassurance in the fact that the diplomatic push to resolve the conflict continues.”" AFP
