Asian equity indexes edged higher Friday as news of a U.S.–Iran peace agreement lifted trader sentiment. The deal promises to reopen the Strait of Hormuz, a chokepoint that routes a third of oil shipments. Energy analysts estimate the agreement could shave $2 billion from daily transport costs. Investors saw steadier crude supplies as a cue that inflation pressures could ease in the near term for markets.

Regional benchmarks responded promptly. Japan’s Nikkei climbed 0.8% and the Topix added 0.4%, while South Korea’s Kospi rose 0.6% and the Shanghai Composite gained 0.5%. Commodity‑heavy exporters tied to energy logistics saw shares rally on expectations that shipping costs will stabilize. The yen and won also edged higher against the dollar.

The optimism is short‑lived if negotiations stall, but for now the market narrative centers on supply‑side relief. Analysts warn any resurgence of tension could quickly reverse gains, pressuring regional banks with oil‑linked exposure. Investors monitor diplomatic channels closely, treating the rally as a test of how swiftly geopolitical risk translates into price stability. A swift de‑escalation could also buoy regional tourism, recovering from travel bans.