Nikkei 225 Tops 65,000 for the First Time as Oil Drops on Iran Deal Hopes

Japan’s benchmark Nikkei 225 record was set Monday as the index crossed 65,000 for the first time, CNBC reported, driven by a steep fall in crude oil prices after President Donald Trump signaled meaningful progress in negotiations with Iran.

Oil Sell-Off Fuels the Rally

Oil prices tumbled more than 5% after Trump posted on Truth Social that talks with Tehran were advancing in a “constructive manner.” He added that his negotiating team had been advised not to rush toward an agreement. WTI crude futures for July fell more than 4.5% to $92.23 per barrel in early Asia trade. Brent crude for July dropped a similar margin to $98.87 per barrel. The sharp reversal in energy prices lifted risk appetite across regional markets.

Nikkei 225 Record in Holiday-Thinned Trade

The Nikkei 225 climbed 2.75%, touching an all-time intraday peak of 65,081.96. The broader Topix index added a more modest 0.65%. Australia’s S&P/ASX 200 was little changed. Several major markets across Asia were closed for public holidays, including Hong Kong and South Korea. US markets were also shut Monday for Memorial Day, thinning overall volume further.

Background: Hormuz Closure Rattled Energy Markets

The Strait of Hormuz has sat at the center of a market-rattling standoff in recent weeks. After the Trump administration imposed a blockade on Iranian ports, Tehran effectively closed the strategic waterway to shipping. The strait handles roughly a fifth of global oil flows, and its disruption sent crude prices surging. Monday’s reports suggesting a potential reopening marked the first credible sign of de-escalation in the standoff.

Wall Street Closed on a High Note

US equities entered the long weekend on solid footing. The Dow Jones Industrial Average gained roughly 294 points on Friday to close at 50,579.70, setting both an intraday and closing record. The S&P 500 finished at 7,473.47 for a gain of 0.37%. The Nasdaq Composite edged 0.19% higher to end at 26,343.97. The positive momentum from those gains appeared to carry into Monday’s Asia session, compounded by the easing oil story.

Analysts will now watch whether formal Iran talks yield a verifiable nuclear agreement before energy markets price in a more lasting supply recovery.

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