Asian stock markets posted significant gains Monday following the announcement of a tentative agreement to end the Iran war and reopen the Strait of Hormuz, a critical global shipping route. Major benchmarks in Tokyo and Seoul initially rose more than 5 percent in early trading, while oil prices dropped more than $4 per barrel.

U.S. President Donald Trump confirmed the initial agreement and authorized an end to the U.S. naval blockade of Iranian ports. Iran also confirmed the deal but indicated that implementation would not begin until a formal signing ceremony scheduled for Friday in Switzerland, according to Pakistani officials. Broader negotiations on issues including Iran's nuclear program are expected to continue over the next 60 days.

Oil markets responded immediately to the news, with Brent crude oil falling $3.61 to $83.64 per barrel and U.S. benchmark crude dropping $4.27 to $80.61 per barrel in early trading. Energy experts cautioned that it may take months for oil prices to fully stabilize after disruptions from the conflict, which began in late February, caused significant price surges that affected gasoline and other petroleum-based products.

Tokyo's Nikkei 225 index gained 5.4 percent to reach a new record high of 69,603.91, with technology shares, particularly those related to artificial intelligence, leading the advance. The Seoul Kospi surged 4.9 percent to 8,517.93, while Hong Kong's Hang Seng gained 0.6 percent and Shanghai's Composite index rose 1.1 percent.

U.S. stock futures indicated likely gains for Wall Street, with S&P 500 futures up 1 percent and Dow Jones Industrial Average futures gaining 0.9 percent. On Friday, U.S. markets had posted gains following SpaceX's debut on Wall Street, with the company's stock jumping 19.2 percent to give it a total valuation of $2.1 trillion.

The week ahead features key monetary policy decisions from major central banks, including the Federal Reserve and Bank of England on Thursday, and the Bank of Japan on Tuesday. The Bank of Japan is widely expected to raise its benchmark interest rate to 1 percent from 0.75 percent, which would mark the highest rate in more than 30 years.