Most stocks rise, oil flat following peace deal-fuelled rally

• Trump says strait would be "completely open" by Friday.
• Iranian media says five vessels passed through US blockade.
• Trump, Vance and Iran top negotiator sign text electronically.
  

Equities mostly rose Tuesday and oil prices held losses following the previous day's euphoric rally sparked by the US-Iran peace deal that will reopen the crucial Strait of Hormuz.

Eyes are now on developments ahead of Friday's signing ceremony in Switzerland, which will bring an end to more than three months of a war that has sent shockwaves through energy markets and sent global inflation soaring.

US President Donald Trump said ships were again moving through the strait and it would be "completely open" by Friday, while Iranian media said three oil tankers and two cargo ships had passed through the area that had been subject to a US naval blockade.

Tehran blockaded the waterway after the United States and Israel launched their war against Iran on February 28. The United States then blocked shipping to and from Iranian ports.

A senior US administration official, however, said Trump, Vice President JD Vance and Iran's parliamentary speaker Mohammad Bagher Ghalibaf had already signed the text electronically.

"Investors are increasingly pricing in a lasting improvement in the geopolitical backdrop," wrote Fiona Cincotta at City Index.

"However, with several details yet to be finalised, any setbacks could trigger a sharp market reaction. For now, confidence is growing that the Strait of Hormuz will reopen and energy supplies will normalise."

She added that "the key question is not whether a deal is reached, but how quickly oil exports and production can recover".

"Investors will also be watching compliance with the agreement and the pace of supply normalisation," she added.

Oil industry watchers caution that market conditions will likely be tight for a period of weeks or months. Fresh US Department of Energy data showed strategic oil stockpiles sank last week to their lowest level since 1983.

Shipping groups warned Monday that it was too soon to safely resume sailing.

The deal sparked a huge relief rally across global equities, with the Dow on Wall Street hitting a record high, while crude prices plunged almost five percent.

The optimism remained largely intact Tuesday, with both main crude contracts barely moved and stocks mostly up.

Seoul led gains once more, surging more than 1% — a day after piling on more than 5% — helped by fresh advances in the tech sector.

That came on the back of another blockbuster day for Elon Musk's SpaceX, which jumped almost 20 percent for the second day in a row after listing Monday.

Shanghai, Singapore, Taipei, Wellington and Manila also rose, though Tokyo, Hong Kong and Sydney were down.

There was little reaction to news that Chinese retail sales shrank last month for the first time since 2022.

Investors are keeping close tabs on the Bank of Japan´s policy meeting, where it is expected to hike interest rates to a 31-year high later in the day.