US-Iran Ceasefire Sends Oil Prices Down, Boosts US Stock Futures
President Donald Trump delayed planned strikes on Iran after linking any action to a two-week ceasefire and reopening of the Strait of Hormuz. Iran’s Supreme National Security Council accepted a two-week truce, the foreign minister said. Iran also agreed to allow passage through the strait under its military control for two weeks.
Market reaction: oil
U.S. crude futures plunged roughly 14.7% to about $96.27 a barrel after the announcement. Brent, the international benchmark, fell near 14.4% to about $93.48 a barrel. Prices still sit well above levels seen before the conflict began in late February.
Earlier trading had shown extreme volatility. A May U.S. crude contract briefly rose above $117 before settling near $112.95. That sharp movement reflected concerns about Persian Gulf supply disruptions.
Market reaction: equities
Stock futures jumped after the pause in military action. S&P 500 futures climbed about 2.2% and Dow futures rose roughly 930 points, or 2%, by 8:05 p.m. ET. Asian markets responded strongly, with Japan’s Nikkei up over 4% and South Korea’s Kospi rising about 6%.
During regular U.S. trading, markets swung on uncertainty. The S&P 500 fell as much as 1.2% before rallying to end with a small gain of 0.1%. The Dow closed down about 85 points, while the Nasdaq finished up roughly 0.1%.
Drivers of the swings
Traders reacted to both the threatened strikes and the late change in orders. International calls for an extension of deadlines also influenced intraday moves. These factors underscore why the US-Iran ceasefire talk sent oil prices down and helped boost US stock futures.
Bonds and consumer impact
Safe-haven pressure eased in the Treasury market. The 10-year U.S. Treasury yield fell to 4.24% from 4.30% earlier that day. That yield remains above the roughly 3.97% level recorded before the conflict began.
Energy costs for consumers jumped amid earlier supply fears. The AAA national average for a gallon of regular gasoline reached $4.14, up from under $3 before the late February attacks. Higher yields and energy costs have pushed borrowing rates for households and businesses upward.
Context and outlook
Trump had issued a deadline tied to reopening the Strait of Hormuz by 8 p.m. Eastern. Pakistan’s prime minister urged an extension and asked Iran to open the waterway for two weeks, a move that helped calm markets. However, analysts warn that volatility could return while the conflict’s duration remains uncertain.
Filmogaz.com will monitor developments and market responses as new information emerges.
