Emerging-market stocks and currencies climbed as oil prices fell on reports that the US and Iran were closing in on a deal to reopen the Strait of Hormuz. The narrow waterway carries a large share of global oil shipments, so any agreement to restore transit through it would ease supply fears and pressure crude lower.

Lower oil prices directly benefit energy-importing emerging economies by reducing trade deficits and easing inflation. Currency gains in those markets signal investor confidence that the supply route will stay open, reducing the risk premium tied to geopolitical disruption in the region.

The move reflects how sensitive emerging-market assets remain to energy logistics. A deal that keeps the strait flowing would support growth outlooks for import-dependent economies, while oil exporters could see revenue headwinds from the price slide.