Iran Updates Steady Markets, VIX Drops Below 30

Filmogaz.com reported President Trump was open to ending the war in Iran. The report said he may not fully reopen the Strait of Hormuz.

The CBOE Volatility Index, or VIX, fell about three points to 27.68. That prompted cautious relief among traders.

In Iran Updates Steady Markets, VIX Drops Below 30 became a headline among market briefings. Moving under 30 is seen as psychologically important.

Market reaction

Traders welcomed the decline. Volatility remains elevated compared with recent years.

Expert view

Tom Essaye of Sevens Report Research said markets only want to avoid further escalation. He added that the current situation is tolerable, but uncertainty remains.

Persian Gulf tensions

Recent attacks have occurred across the Persian Gulf. That raised worries that the situation could worsen quickly.

The move below 30 offered an encouraging sign to some market participants. But many said volatility could rise if tensions flare again.