Oil prices have fallen and stock markets rallied following the United States and Iran's signing of an interim peace agreement, aiming to end a conflict that has disrupted global energy supplies.

The agreement, brokered by Pakistan's Prime Minister Shehbaz Sharif, has entered into force with immediate effect, according to Sharif. This development comes after several days of market volatility, including a brief spike in oil prices on Wednesday due to warnings from US President Donald Trump about potentially resuming military action.

Brent crude, the international benchmark, dropped as much as 1.6 percent on Thursday morning in Asia, returning to levels seen just 24 hours prior. Brent futures for August delivery stood at $78.23 per barrel as of 04:00 GMT, approximately 7 percent higher than before the US and Israel launched their war on Iran on February 28.

Asia's main stock markets opened higher, reflecting renewed optimism about the resolution of nearly four months of disruption to global energy supply chains. Japan's Nikkei 225 rose 1.9 percent to an all-time high in early trading, while South Korea's Kospi gained over 1 percent and Taiwan's Taiex climbed about 1.3 percent. US stock futures also showed gains, with those tied to the S&P 500 and Nasdaq Composite rising.

Under the memorandum of understanding (MoU), Iran will reopen the Strait of Hormuz, and the US will lift its naval blockade of Iranian ports. However, the immediate impact on maritime traffic in the critical waterway remains unclear. Shipping through the Strait of Hormuz has been severely reduced due to the threat of Iranian missiles, drones, and mines, as well as the US blockade, leaving hundreds of vessels waiting to exit the Gulf.

Shipping companies have voiced concerns regarding the safety of their vessels and crews in the channel, highlighting a lack of clarity on security measures. The reduction in shipping activity has had a significant impact on global energy markets and supply chains since the conflict began in late February.

Details regarding the specific terms of the agreement and the timeline for the full lifting of the blockade and the complete reopening of the Strait of Hormuz were not immediately available. The market's reaction suggests a strong desire for stability in energy markets, though potential lingering concerns about enforcement and adherence to the agreement may persist.

Further developments will be closely watched to assess the long-term implications for regional security, global trade, and energy prices. The successful implementation of the peace framework could lead to a sustained recovery in oil prices and a broader economic rebound.