US and Iran Agree to Two-Week Ceasefire Amid Market Optimism
The United States and Iran have agreed to a two-week ceasefire, leading to significant gains in U.S. stock markets and a sharp decline in oil prices.
The United States and Iran have agreed to a two-week ceasefire, leading to significant gains in U.S. stock markets and a sharp decline in oil prices. The Dow Jones Industrial Average surged 1,325 points, or 2.8%, closing at 47,909.92, while the S&P 500 rose 2.5% to 6,782.81, and the Nasdaq Composite gained 2.8% to 22,635.00.
The ceasefire, brokered by Pakistan, includes Iran's commitment to reopen the Strait of Hormuz, a critical passage for global oil shipments. Following the announcement, U.S. oil prices dropped nearly 15%, settling around $96 per barrel, though still above pre-conflict levels of approximately $67 per barrel.
President Donald Trump highlighted the ceasefire in a social media post, stating there would be "no enrichment of Uranium," despite Iran's assertion that the U.S. agreed to its plan, which includes various concessions. He added that "the United States will, working with Iran, dig up and remove all of the deeply buried (B-2 Bombers) Nuclear 'Dust.'"
The Iranian Supreme National Security Council's statement included "acceptance of enrichment" in its 10-point plan. Investors are closely monitoring the potential increase in tanker traffic through the Strait of Hormuz, as the resumption of shipments remains uncertain.
The conflict, which began on February 28, has resulted in over 5,000 deaths across the region. The ceasefire has been welcomed globally, with calls for a lasting peace in the Middle East.