Emerging-market stocks rise as Iran-Oman Hormuz talks send oil sliding

Emerging-market stocks and currencies climbed on Wednesday as falling oil prices eased inflation fears across energy-importing economies. The rally was sparked by Iran's announcement that it had resumed talks with Oman on managing the Strait of Hormuz, a chokepoint for roughly a fifth of global seaborne oil trade.

Oil Slide Lifts Risk Appetite

Brent crude fell more than 3% to around $85.81 a barrel, extending a second straight session of losses. The diplomatic signal from Tehran reduced perceived shipping risk through the strait, which had been a source of price volatility throughout August. Earlier in the month, Brent had traded near $91 before attacks disrupted optimism about a reopening, and the benchmark had climbed close to $90 on August 12 after those hopes faded.finimize+2

The MSCI ↘ 2.27% emerging-market currency index edged up 0.07% after hitting record highs this month, while oil-sensitive Asian currencies including South Korea's won held firm near an 11-month high.finimize

Asian Markets Rally

South Korea's Kospi gained 1.69% on Wednesday, closing at 6,856.44, supported by chipmaker buybacks and anticipation of Nvidia ↗ 2.78% earnings results due after the U.S. close. Thai assets held firm after the Bank of Thailand kept its benchmark rate unchanged at 1.00%, in line with expectations. The central bank has maintained that rate since cutting from 1.25% in February.marketscreener+3

Hormuz Diplomacy and What Comes Next

The Strait of Hormuz has been at the center of oil market swings throughout 2026. Reuters reported in early August that a potential U.S.-Iran deal to reopen the strait was in focus alongside Federal Reserve rate expectations. Iran's president had indicated in late August that Tehran wanted the conflict to end soon, and the resumption of talks with Oman appears to be a concrete step in that direction.cnbc+1

The risk for emerging markets is that the tailwind proves fleeting. As the Finimize analysis noted, support from lower oil "can fade quickly if US inflation data or Federal Reserve messaging pushes the dollar higher again".finimize