Zhao Yaoting, the Chief Global Market Strategist for Invesco Asia-Pacific, stated that the temporary 14-day ceasefire announced by the United States and Iran has uplifted the global markets. Asian stock markets have shown significant rebounds, Brent crude oil prices have plummeted, and the US dollar has weakened. Despite providing some relief to the markets, geopolitical uncertainties have not been completely eliminated. For this risk-on sentiment to continue, the US, Iran, and Israel must be able to translate the ceasefire into a lasting peace. Zhao Yaoting remains cautiously optimistic about the future market outlook, pointing out that investors need to pay attention to the complex issues that still exist before achieving "permanent peace." There are notable differences between the ten-point plan proposed by Iran and the fifteen-point peace plan put forward by Trump in March this year. For instance, the issue of whether to preserve or dismantle Iran's uranium enrichment program continues to be a sticking point. Additionally, there are disagreements on various key issues between the two sides. Future negotiations are expected to be challenging, and the possibility of reaching a comprehensive agreement remains uncertain. Economically, the market is most concerned about whether the Strait of Hormuz will be reopened as promised by Iran. According to Iran's proposed plan, the country commits to coordinating with its armed forces to provide safe passage arrangements for ships under technical restrictions. This means that even if ships start to pass through the strait in the next two weeks, the shipping volume may not quickly return to pre-conflict levels. The energy market has already reflected these realities. During Wednesday's Asian trading session, the prices of West Texas Intermediate (WTI) and Brent crude oil fell to around $95 per barrel, a significant drop from nearly $110 the night before but still well above the pre-conflict level of around $70. With geopolitical risks still present, oil prices are expected to remain at elevated levels. Asian economies are highly dependent on energy imports, making them particularly sensitive to the impact of Middle East conflicts. If the Strait of Hormuz gradually reopens, it will provide an opportunity for Asian policymakers to negotiate with Iran on safe passage for vessels, helping to alleviate short-term pressures on energy and commodity prices and reducing inflation risks. The temporary calming of the situation is expected to drive further stock market gains, with non-US markets potentially outperforming. The bond market may also improve due to lower oil prices and reduced inflation pressures. As investors assess the durability of the ceasefire, the US dollar may weaken further. In the Asian markets, tech and AI stocks have been oversold since the onset of the Middle East conflict; on the other hand, US stocks and AI-related assets have performed better as investors shift towards assets seen as safe havens or benefiting from defense-related technologies. As long as the ceasefire holds, these trends are expected to reverse in the coming weeks. In the long run, the situation in the Middle East may accelerate structural changes in Asia, including a faster transition to alternative and renewable energy sources.