The Thai stock market surged 1.30% in the afternoon session, following the report of a draft MOU between the U.S. and Iran, signalling a near end to more than a four-month war in the Middle East.
The SET Index is approaching its resistance level of 1,600 points, hovering around 1,593 points in late afternoon. Asian markets also move in similar direction with Japan’s Nikkei closed 2.81% higher. South Korean Kospi Index rose 4.6%, Indonesian’ IDX Composite gained 2.5%, Shanghai Composite increased 1.12% and Hong Kong’s Hang Seng Index inched 1.93% higher.
The sentiment came after Iranian news agency Mehr reported that a preliminary agreement between Iran and the United States features mutual pledges to remove oil sanctions and restore shipping through the Strait of Hormuz.
The 14-point memorandum outlines that formal negotiations will only proceed once Iran receives access to half of its currently frozen financial assets. Additional requirements include the halting of U.S. oil sanctions on Iran and the termination of an existing naval blockade.
According to Mehr News, the document also stipulates that all U.S. military personnel depart from Iranian territory. Furthermore, the United States and partner nations are expected to submit detailed proposals for the reconstruction of Iran, with commitments totalling a minimum of $300 billion.
The agreement, as described in the report, mandates U.S. action to end both sanctions and military presence, alongside Iraqi obligations to open the Strait of Hormuz to maritime traffic within a month. Iran is set to obtain $24 billion in funds during a 60-day negotiation window, according to the agency.
