Oil prices fall, stocks rally as US, Iran sign framework to end war

Oil prices have dropped following the United States and Iran's signing of an interim peace agreement, resuming a slide interrupted by US President Donald Trump's warning that he could restart his military campaign, AI Jazeera has reported.

- NORMAN PALIHAWADANE

Brent crude fell 2.3 percent on Thursday in Asia, returning the international benchmark to near to where it was 24 hours previously.

Brent futures for delivery in August stood at $77.73 as of 05:30 GMT, only about 7 percent higher than before the US and Israel launched their war on Iran on February 28.

After several days of declines, Brent briefly spiked above $81 a barrel on Wednesday after Trump warned that the US could "go right back to dropping bombs" on Iran if it doesn't "behave".

Shrugging off losses on Wall Street overnight, Asian stock markets rallied on renewed optimism for an end to nearly four months of disruption to global energy supply chains.

Japan's benchmark Nikkei 225 and South Korea's Kospi both hit all-time highs, gaining more than 2 percent and 1.7 percent, respectively.

Taiwan's Taiex rose as much as 1.3 percent.

Hong Kong's Hang Seng Index bucked the trend, dropping 1.7 percent.