On Monday morning, US benchmark West Texas Intermediate was down 4.7 percent at US$80.89 a barrel while North Sea Brent Crude sank 4.03 percent.
Here in Hong Kong, the Hang Seng Index rose 283 points, or 1.15 percent, to open at 25,001 points.
Elsewhere, Tokyo’s Nikkei 225 gained 5.1 percent to 69,367 as the benchmark logged another record high.
The Kospi in Seoul led regional gains, surging 5.6 percent to 8,577.
In Australia, the S&P/ASX 200 advanced 1.4 percent to 8,930.
The rally in Asia-Pacific equities came after mediator Pakistan said the US and Iran had agreed to a peace deal and an “immediate and permanent” end to military operations on all fronts, including Lebanon.
But it may take months for oil prices to stabilise after the disruptions from the war caused them to surge, pushing costs up gasoline and many other products.
Energy experts said shipping and insurance companies will want to be confident the pact will hold, ensuring that oil and gas supplies will flow freely enough for the world’s needs to be met.
Still, the news was a huge relief for markets that have been roiled since the conflict began in late February.
The deal on ending the war offers relief to the global economy more than three months since fighting began. (Agencies)
