Late Tuesday, oil markets tumbled and global equities surged after Donald Trump agreed to pause military action against Iran in exchange for restoring safe passage through the Strait of Hormuz.
Oil Prices Plunge, Stock Futures Rally On Ceasefire Hopes
Dow futures surged 848 points, or 1.81%, to 47,660.00 as of 8:45 p.m. EDT.
S&P 500 futures climbed 138.25 points, or 2.08%, to 6,795.00, while Nasdaq 100 futures jumped 674.75 points, or 2.77%, to 25,045.75.
In commodities, WTI crude fell 13.66% to $97.52 per barrel, while Brent crude dropped 12.57% to $95.54 per barrel.
RBOB gasoline futures slid 9.80% to $2.9814 per gallon and ULSD heating oil futures plummeted 16.09% to $3.7572 per gallon.
Natural gas futures declined 3.31% to $2.775 per MMBtu.
Meanwhile, the U.S. dollar index was at 98.998, down 0.52%.
Asian markets were higher, with Japan’s Nikkei 225 gaining 4.27% to 55,712.92, while South Korea’s KOSPI rose 5.29% to 5,785.22.
Trump Announces Two-Week Pause
In a post on Truth Social, Trump said he would suspend planned strikes on Iran for two weeks to allow time for negotiations, contingent on Tehran ensuring safe navigation through the Strait.
“Almost all of the various points of past contention have been agreed to,” Trump wrote, adding, “two week period will allow the Agreement to be finalized and consummated.”
The decision came shortly before a U.S. deadline for Iran to reopen the passage, which Trump had previously tied to the threat of large-scale military action.
Roughly one-fifth of the world’s oil supply flows through the Strait, making it one of the most strategically important energy corridors.
Iran Signals Conditional Cooperation
In a post on X, Iranian Foreign Minister Seyed Abbas Araghchi said Tehran would permit transit through the Strait during the ceasefire.
“If attacks against Iran are halted, our powerful armed forces will cease their defensive operations,” he said, adding that coordination would ensure safe passage.
Pakistan Prime Minister Shehbaz Sharif also took to X and said that Iran, the U.S. and their allies have agreed to an immediate ceasefire across all regions, including Lebanon. “Effective Immediately.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Mason Lawrence
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