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Markets Rebound as Fragile U.S.–Iran Truce Heads to Talks in Islamabad

Weekend talks in Islamabad will test whether the market rebound can hold.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 9, 2026. REUTERS/Staff
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 8, 2026. REUTERS/Staff
A screen showing Asia markets indexes at the foreign exchange dealing room of the Hana Bank headquarters, in Seoul, South Korea, Friday, April 10, 2026. (AP Photo/Ahn Young-joon)
Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top center, and the foreign exchange rate between U.S. dollar and South Korean won, top center left, at the foreign exchange dealing room of the Hana Bank headquarters, in Seoul, South Korea, Friday, April 10, 2026. (AP Photo/Ahn Young-joon)

Overview

  • Asian stocks rose Friday, tracking Wall Street’s advance, as U.S. and Iranian delegations prepare to meet in Islamabad on Saturday for ceasefire talks.
  • The two-week pause lifted risk appetite earlier in the week, yet Israeli strikes in Lebanon and Tehran’s control claims over the Strait of Hormuz kept oil volatile near $96–$99 a barrel.
  • Indian benchmarks swung hard, with the Sensex dropping 931 points Thursday on renewed tensions before rebounding Friday as the Nifty approached 24,000 on domestic buying and TCS results.
  • The Strait of Hormuz, which carries about one-fifth of global oil, remains largely closed with traffic far below normal and hundreds of ships queued on both sides of the waterway.
  • Talks are set to be led by U.S. Vice President JD Vance, and even a breakthrough would not quickly restore normal flows, as the IEA says dozens of damaged energy sites will take time to repair.