Markets reacted positively on Wednesday following reports that the United States had presented Iran with a 15-point proposal and was pursuing a month-long ceasefire to create space for discussion. The immediate market response saw futures and regional equity indices gain, while global oil benchmarks dropped sharply on the prospect that Persian Gulf exports could resume.
S&P 500 futures rose 0.9% in Asian morning trade and European futures gained 1.2%. Brent crude futures fell about 6% to $98.30 a barrel. Equity markets in Australia, South Korea and Japan each moved up roughly 2% in early trade. Gold, which had been sold for profit after a prolonged rally, climbed 1.6%.
"The market is trading the headlines at the moment," said Kerry Craig, global market strategist at J.P. Morgan Asset Management in Melbourne. "So there’s a positive tone. The difficulty is now...there are still unknowns about where this actually goes from here and whether there’s anything material in terms of a ceasefire."
U.S. officials have signaled progress toward negotiating an end to the conflict, with the White House indicating a notable concession had been won from Tehran. A source confirmed that Washington had sent Iran a 15-point settlement proposal for discussion. Israel’s Channel 12, citing three sources, reported that the U.S. was seeking a month-long ceasefire to allow time to discuss that plan. Iran has denied that direct talks have taken place.
Markets have responded with cautious optimism to the rumblings since Monday that Washington is exploring options to halt hostilities temporarily, though it remains unclear when and under what conditions tankers might transit the Strait of Hormuz safely and oil flows might normalize.
Currency markets showed limited movement. The U.S. dollar was marginally lower for the week and came under slight pressure on Wednesday morning, buying 158.8 yen and trading at $1.1620 per euro. Meanwhile, Brent crude remains roughly 35% higher since the war began and close to the $100 a barrel threshold that is already straining buyers in Asia who are paying up for jet fuel and diesel.
Interest-rate markets reacted by trimming some of the recent repricing of risk. Benchmark 10-year Treasury yields fell about five basis points to 4.34% in Tokyo trade, while two-year yields dropped by a similar margin to 3.875%. As a reminder, yields decline when bond prices rise.
Market participants described positioning as light, with many investors unwilling to chase headline-driven moves that could quickly reverse. "For now, it feels like a market that is reacting rather than anticipating, and until there is clearer alignment from both sides, I would expect price action to remain fragile," said Marc Velan, head of investments at Lucerne Asset Management in Singapore. "People are reluctant to chase moves that are entirely headline-driven and can reverse quickly."
On the ground, U.S., Israeli and Iranian strikes have continued even as diplomatic activity was reported. Sources said Washington was preparing to send more troops to the region. Two people familiar with the matter said the U.S. was expected to deploy thousands of soldiers from the Army’s 82nd Airborne Division to the Middle East.
The Australian dollar remained near 70 U.S. cents after February inflation data - recorded before the outbreak of war - came in a tad cooler than expected.
Worries over the conflict have also masked mounting concerns in credit markets. Signs of stress among private credit vehicles have emerged, and Ares Management became the latest asset manager to cap withdrawals at a private debt fund, unsettling investors. Ares, which managed roughly $623 billion in assets at the end of 2025, saw its shares fall 1% on Tuesday; they are down 36% so far this year.
Overall, market action reflected a blend of hope that diplomacy could limit disruption to oil supplies and caution about the durability of any agreement. Traders, strategists and asset managers noted that until there is concrete confirmation of a ceasefire and visible changes to activity in the Persian Gulf, price swings are likely to remain sensitive to newsflow and military developments.
Summary
Reports that the U.S. sent a 15-point plan to Iran and is seeking a month-long ceasefire sparked gains in S&P 500 and regional equity futures and a roughly 6% drop in Brent crude to $98.30 a barrel. Gold rose, bond yields eased, and investors cautioned that market moves may be transient while military activity and troop deployments continue.