DID Press: Oil prices in global markets dropped sharply while stock markets recorded significant gains following the announcement of a two-week ceasefire between United States and Iran by Donald Trump.
The decision triggered a wave of optimism among investors, particularly due to expectations that oil and gas flows through the Strait of Hormuz could resume.
Trump announced late Tuesday that attacks against Iran would be halted for two weeks, adding that efforts toward achieving a long-term peace agreement are underway. In response, Iran stated that it would suspend its own operations if attacks against the country cease, and that safe passage through the Strait of Hormuz would be guaranteed for two weeks in coordination with Iranian armed forces.
Following the development, U.S. crude oil futures fell by approximately 16.5 percent to about $94 per barrel, while futures tied to the S&P 500 rose by more than 2 percent. The value of the U.S. dollar, which had strengthened during the tensions as a safe-haven asset, also declined broadly.
Global markets had been volatile since late February, when the United States and Israel launched attacks against Iran—an action that led Tehran to effectively block the Strait of Hormuz, a route responsible for nearly one-fifth of the world’s oil and gas transit.
Meanwhile, futures on 10-year U.S. Treasury bonds rose by around 15 points, and Asian stock markets—previously pressured by the conflict and rising energy prices—showed signs of recovery.
Jamie Cox stated: “Markets had anticipated that Trump was seeking an exit strategy from the Iran crisis; today he found that opportunity and used it.”
At the same time, Trump announced that the United States had received a 10-point proposal from Iran, describing it as an acceptable basis for negotiations and adding that the parties are very close to reaching a final agreement for long-term peace.
However, analysts caution that despite these positive signals, significant uncertainties remain. Tony Sycamore wrote in a note: “This is a good start and could pave the way for a lasting reopening, but many unknown factors still exist.”