US-Iran Ceasefire Triggers Oil Price Drop, Stock Futures Surge
President Donald Trump announced he would delay planned strikes on Iranian infrastructure. He conditioned the pause on a two-week ceasefire and reopening of the Strait of Hormuz.
Ceasefire acceptance and conditions
Iran’s Supreme National Security Council said it accepted a two-week ceasefire. Iran’s foreign minister added that passage through the Strait of Hormuz would be allowed for two weeks under Iranian military management.
Market reaction
U.S. crude futures plunged 14.7% to $96.27 a barrel. Brent crude fell 14.4% to $93.48 a barrel.
S&P 500 futures were up 2.2% as of 8:05 p.m. ET. Dow futures rose about 930 points, roughly 2%.
Intraday stock swings
Earlier in the session, the S&P 500 dropped as much as 1.2%. Stocks rallied by the close and the index finished with a 0.1% gain.
The Dow ended the regular session down about 85 points, or 0.2%. The Nasdaq added roughly 0.1%.
Asian markets
Trading in Asia opened higher after the ceasefire news. Japan’s Nikkei climbed more than 4% and South Korea’s Kospi rose about 6%.
Oil market context
Before the ceasefire, a U.S. crude benchmark briefly topped $117 a barrel. It later settled near $112.95 amid earlier war-related supply fears.
Markets had been pricing in disruptions to Persian Gulf production and exports. Much regional oil moves through the Strait of Hormuz, which Iran had restricted to adversaries.
The US-Iran conflict sent gasoline prices higher. AAA reported the national average for regular gasoline at $4.14 per gallon, up from below $3 before late February attacks.
Bonds and broader economic impact
Safe-haven Treasury yields eased after ceasefire reports. The 10-year Treasury yield fell to 4.24% from 4.30% earlier in the day.
Yields remain above the pre-war level of 3.97%. Higher rates have pushed mortgage and loan costs higher, which can slow economic activity.
US-Iran Ceasefire Triggers Oil Price Drop, Stock Futures Surge as markets reacted quickly to the de-escalation. The episode highlights ongoing volatility tied to the conflict.
Reporting for Filmogaz.com.
