Japan’s Nikkei 225 index achieved a historic milestone on Monday, surging past the 65,000 mark for the first time in history. This record-breaking rally occurred during a period of lighter trading across Asian markets, driven largely by a sudden shift in global energy market sentiment.

The surge in equities coincided with a significant drop in global oil prices. Following signals from President Donald Trump regarding constructive progress in negotiations with Iran, fears of a prolonged closure of the Strait of Hormuz have eased. Trump indicated that discussions are proceeding in an orderly and constructive manner, which helped alleviate the geopolitical tensions that had previously driven energy costs upward following recent maritime blockades.

Crude oil benchmarks saw substantial declines as a result of the improved diplomatic outlook. West Texas Intermediate (WTI) futures fell nearly 6% to approximately $90.93 per barrel, while Brent crude dropped over 5% to $97.76 per barrel. This relief in energy costs provided a significant tailwind for regional indices; notably, Taiwan’s Taiex also reached an all-time high, surpassing the 43,000 level.

While trading volumes were thinned by public holidays in Hong Kong, South Korea, and the United States, the momentum follows a strong performance in U.S. markets during the previous session. Major American indices, including the Dow Jones Industrial Average and the S&P 500, recently posted record closes, setting a positive tone for the current week’s global market activity.