Oil Prices Plunge, Asian Stocks Soar as Hopes Rise for a U.S.-Iran Peace Deal.

There’s growing optimism that the U.S.-Israel war with Iran might finally come to an end. Oil prices took a sharp dive on Monday morning, while Asian stock markets jumped, after signs emerged that a peace deal could be reached as soon as today.

U.S. Secretary of State Marco Rubio, speaking during a visit to India, said negotiators have a “pretty solid thing on the table.” He admitted things are still a work in progress, but an agreement might be announced Monday.

That optimism sent global oil benchmark Brent crude down 5.5%, to $97.90 a barrel, while U.S. traded crude dropped nearly 6%, to $90.93.

The key sticking point and the reason for the rollercoaster in energy markets is the Strait of Hormuz. About a fifth of the world’s oil and liquefied natural gas usually passes through this narrow waterway, but it’s been effectively closed since the conflict began on February 28.

President Donald Trump said any deal would include reopening the strait, though he didn’t offer details. Over the weekend, Trump first suggested a deal was close, then later told negotiators not to rush. He mentioned a “very good call” with leaders of Saudi Arabia, the UAE, and Qatar about a “Memorandum of Understanding pertaining to PEACE.”

Iran’s foreign ministry spokesman said the two sides’ positions have been converging in the past week, though he warned that “contradictory statements” from the U.S. don’t make things easy.

Even if a deal is announced, shipping experts say the industry will be cautious. Lars Jensen, a former Maersk director, told the BBC it could take months for supply chains to fully return to normal, especially with risks like sea mines still lurking.

Still, the hope of reopening the strait was enough to send Japan’s Nikkei 225 index above 65,000 for the first time, up 3%. Japan and South Korea, both heavily dependent on Gulf energy, have been hit hard by the conflict.

U.K. and U.S. markets are closed Monday for public holidays, so the full reaction will wait until Tuesday.