South Korea’s Kospi led the regional advance with a 3.2% gain, triggering temporary trading halts on both the Kospi and Kosdaq indices after futures contracts spiked by more than 5%. Sentiment remained largely positive elsewhere as Japan’s Nikkei Stock Average climbed 0.7%, Taiwan’s Taiex rose 1.1%, and Singapore’s FTSE Straits Times Index added 0.5%. Hong Kong’s Hang Seng Index bucked the trend, slipping 0.3%.

Analysts at Commerzbank noted that while both nations reserve the right to retaliate, the market has pivoted to view the current status as a significant reduction in the probability of a wider regional conflict. This cooling of tensions exerted immediate downward pressure on energy markets. West Texas Intermediate crude futures fell 0.5% to $90.85 per barrel, while Brent crude dropped 0.6% to $93.72 per barrel, according to ICE data.