The diplomatic breakthrough, supported by Qatari mediation, focuses on a proposal to split transit routes. Under the draft, vessels entering the Persian Gulf would utilize Iranian waters, while outbound ships would transit via Omani waters, effectively eliminating current transit fees. This development follows a period of acute regional instability, highlighted by a Tuesday incident where a cargo ship was struck by an unidentified projectile off the coast of Oman.

Market reaction was swift as investors pivoted toward risk-on assets. South Korea’s Kospi climbed 4.9%, Japan’s Nikkei Stock Average gained 3.2%, and Australia’s S&P/ASX 200 rose 0.6%. Conversely, energy markets cooled as supply fears dissipated. West Texas Intermediate crude futures slipped 0.5% to $75.40 a barrel, with Brent crude down 0.3% to $79.10. Commonwealth Bank of Australia economist John Oh noted that the potential interim deal marks a significant de-escalation, particularly following the recent cancellation of planned U.S. military strikes against Iranian targets.