Asia’s Relief Rally Hinges on Hormuz and Oil, Strategists Say
People queue to refuel at a fuel station in Ahmedabad, India on March 23.
Photographer: Shammi Mehra/AFP/Getty Images
Donald Trump’s announcement of a two-week ceasefire between the US and Iran brings welcome relief to Asian markets in the short term, according to strategists.
But the sustainability of the region’s equity rally depends on how quickly passage through the Strait of Hormuz resumes, they warn. Elevated oil prices remain a downside risk for Asian economies, many of which rely heavily on Middle Eastern crude imports.