A two-week ceasefire between the US and Iran has made oil prices fall down and pushed stock markets higher around the world.
The US and Iran have agreed to a temporary ceasefire. Under the deal, the US will pause its attacks on Iran for two weeks while both sides work toward a long-term peace agreement.
Iran has also said it will stop its operations during this period. Most importantly, it has promised to reopen the Strait of Hormuz if the attacks on it are stopped.
The Strait of Hormuz is the world’s most critical oil shipping route. Around one-fifth of the world’s oil and gas passes through it. Iran shut it down after US and Israeli strikes in late February 2026, which impacted global markets.
What Happened to Markets?
The reaction was immediate.
- US crude oil dropped roughly 16.5% to $94 per barrel.
- S&P 500 futures, a forward indicator for US stocks, climbed more than 2%.
- Asian stock markets also showed signs of recovery.
- The US dollar fell in value as investors moved money out of safe assets and back into stocks.
- US 10-year Treasury bonds also recorded gains.
Economist Jamie Cox said markets had already sensed that Donald Trump was looking for an exit from the Iran conflict. This announcement, he said, is a major step in that direction.
Trump himself confirmed that Iran’s 10-point peace proposal is a workable starting point for talks. He added that the chances of a permanent agreement are growing stronger.
