The benchmark Philippine Stock Exchange index (PSEi) closed Wednesday at 6,044.17, rising 1.82 percent, as the local market rallied on optimism that a potential agreement between the United States and Iran could ease geopolitical tensions.

The market’s rally followed reports that the United States had sent a 15-point peace plan to Iran, signaling possible progress toward ending the conflict and lifting investor sentiment. While details of the proposal remain uncertain, it is believed to include measures aimed at reducing military confrontation, ensuring the continued flow of oil shipments and reopening diplomatic channels.

While details remain limited and Iran has not fully confirmed engagement on the framework, the mere emergence of a structured proposal helped temper worst-case scenarios priced into global markets — particularly fears of supply disruptions that had driven oil volatility. However, investors remain cautious, as past negotiations between the two sides have proven fragile, and any breakdown could quickly reignite geopolitical risks. As such, the plan has so far provided only tentative relief, supporting equities while leaving currency markets more guarded amid uncertainty over actual implementation.

Trading activity remained relatively subdued, with net value turnover at P5.44 billion, as some investors stayed on the sidelines amid lingering uncertainties.

Notably, foreign investors turned net buyers, posting P224.69 million in inflows and snapping a 14-day streak of net foreign selling.

All sectors finished in positive territory, led by Mining & Oil, which rose 4.03 percent. Market breadth was favorable, with 118 advancers against 81 decliners. Century Pacific Food Inc. (CNPF) led gains, climbing 5.32 percent to P36.65, while PLDT Inc. (TEL) lagged, falling 2.96 percent to P1,310.00.

On the currency front, the peso weakened to P60.10 per dollar from Tuesday’s P59.95 close, reflecting continued pressure from a stronger US dollar. The peso’s depreciation came as global investors remained cautious despite headlines suggesting possible Middle East de-escalation.

While the reported 15-point peace plan helped lift risk assets such as equities, foreign exchange markets remained defensive, with traders favoring the US dollar amid uncertainty over whether negotiations will materialize.

At the same time, oil market volatility continues to play a critical role. Prices remain highly sensitive to developments involving the Strait of Hormuz, a key global supply route, and even the possibility of disruptions keeps a risk premium embedded in crude prices.

This dynamic is particularly negative for the Philippines, a net oil importer, as higher oil prices widen the trade deficit and increase dollar demand for imports — both of which weigh on the peso.