Positive news has emerged from the Strait of Hormuz. According to the latest reports, Malaysia has announced that Iran will permit some of its oil tankers to pass through the Strait. This move has alleviated concerns about potential energy supply disruptions caused by conflict involving Iran. Over the past 24 hours, there has been a slight increase in the number of Iran-related vessels attempting to transit the Strait, primarily consisting of bulk carriers and liquefied petroleum gas (LPG) tankers.
During trading on March 27, the FTSE China A50 futures and the MSCI China A50 Index both experienced significant rallies, rising by 1.09% and 1.20% respectively at the time of reporting. Additionally, Nikkei 225 futures surged over 2%, Nasdaq futures increased by 0.64%, Dow Jones futures rose by 0.51%, and S&P 500 futures climbed 0.57%. Major indices in the A-share and Hong Kong markets also opened lower but moved higher, with the ChiNext Index up over 1%, the Shenzhen Component Index rising 1.46%, the Shanghai Composite Index gaining 0.73%, the Hang Seng Tech Index increasing by 1.38%, and the Hang Seng Index up 0.80% at the time of reporting. Sectors such as lithium mining, non-ferrous metals, pharmaceuticals, food and beverage, and chemicals all showed strength. Stock markets in South Korea and Japan also recovered from earlier losses during the session.
Regarding the latest developments in the Strait of Hormuz, it was reported that Malaysian Prime Minister Anwar announced that Iran will allow Malaysian vessels to pass through the Strait. It remains unclear how many Malaysian vessels will be permitted passage. Although Malaysia is an oil-producing country, its oil imports exceed its exports, making nearly half of its supply dependent on the Strait of Hormuz. Previously, Tehran had stated it would allow vessels not associated with Israel or the United States to use the Strait.
Markets have been closely monitoring the situation in the Strait of Hormuz for signs of disruption or de-escalation, as ongoing tensions between Washington and Tehran continue to cause volatility in energy prices. The Strait is a critical artery for global crude oil flow. On the 26th, it was stated that Iran is allowing the passage of 10 tankers as a "gift." This suggests that at least some oil shipments are still moving through the waterway, which may ease immediate supply concerns.
Ship-tracking data indicates that several vessels, including five bulk carriers, have transited the Strait of Hormuz. Two Iran-associated LPG tankers began moving out of the Persian Gulf on Thursday morning. Stock markets found support after a potential deadline for military action against Iranian energy facilities was extended to April 6th. This marks a sharp change in rhetoric, indicating a potential path toward de-escalation, though uncertainties remain as Iran's leadership appears reluctant to engage in direct negotiations with Washington.
It was separately announced that a U.S. insurance plan designed to facilitate shipping through the Strait of Hormuz will be launched soon. This initiative, which includes naval escort insurance guarantees, could help restore the flow of a significant portion of the world's oil and gas supplies. The plan was initially announced on March 3rd, but there is no evidence yet of vessels benefiting from it having passed through the Strait.
The Strait of Hormuz is a chokepoint for approximately one-fifth of global oil and gas flows. The assurance was given that oil markets are adequately supplied, and actions are being taken to ensure stranded supplies can reach global markets. Bold measures, such as the maritime reinsurance plan, are expected to soon provide unprecedented security guarantees for shipping in the Gulf region.
These statements come amid growing concerns about surging oil and gas prices during the Iran conflict and the risk of prolonged energy supply shocks even after hostilities end. Previous threats to strike Iranian power plants were subsequently put on hold, while Iran vowed to completely close the Strait of Hormuz in response and target energy facilities in the region.
Regarding diplomatic efforts, it was reported that negotiations between the U.S. and Iran have made progress, though specific details were not disclosed. Some countries are acting as intermediaries to facilitate information exchange, and the process is described as ongoing and fluid. Pressure will be applied at an upcoming G7 foreign ministers' meeting for other nations to assist in "reopening" the Strait of Hormuz, as it is in their interest to do so.
It was confirmed that a U.S. proposal for ending hostilities, outlined in a "15-point plan," has been delivered to Iran via Pakistan. Substantive dialogues are reportedly underway with key relevant figures. Iran's foreign minister stated that over the past few days, messages have been exchanged through intermediary nations, clarifying that this constitutes an exchange of information rather than formal negotiations. A senior official indicated that Iran has rejected the U.S. ceasefire proposal and put forward its own five conditions for a truce.