US-Iran Ceasefire Boosts Stocks, Drives Crude Prices Down
President Donald Trump announced a two-week suspension of attacks after receiving a reported 10-point proposal.
Iran agreed to provide safe passage through the Strait of Hormuz. The waterway handles about one-fifth of global oil and gas.
Market reaction
News of a US-Iran ceasefire boosted stocks and helped drive crude prices down. Investors reacted with clear relief.
West Texas Intermediate fell sharply to $97.12 a barrel. Brent North Sea crude dropped to $94.86 a barrel.
Equities
Asian shares led gains. Tokyo surged, Seoul rallied, and Taipei rose strongly.
Sydney, Hong Kong, Shanghai, Singapore and Wellington also recorded notable increases.
Currencies and commodities
The dollar weakened after the ceasefire announcement. The euro, pound and yen all strengthened.
Gold rallied about five percent. Bitcoin also climbed as risk appetite returned.
Political developments
The announcement followed days of escalating rhetoric. Mr. Trump had warned Iran with stark threats earlier in the week.
He later conditioned the pause on Tehran’s complete, immediate and safe reopening of the strait. He described the halt as a “double-sided” ceasefire.
Pakistan’s Prime Minister Shehbaz Sharif, a mediator in talks, said the ceasefire would begin immediately. He added that the United States and its allies had agreed to a halt in hostilities, including in Lebanon.
Tehran had warned of long-term energy retaliation if its red lines were crossed. The latest agreement removes the immediate threat to tanker passage.
Analyst commentary
Michael Brown of Pepperstone said markets had hoped for de-escalation. He noted the reaction was positive but not explosive.
Stephen Innes of SPI Asset Management said the deal mattered for Asia. Lower oil prices ease inflation pressure and unlock risk appetite.
Key market figures (around 0230 GMT)
| West Texas Intermediate | DOWN 14.0% at $97.12 a barrel |
| Brent North Sea Crude | DOWN 13.2% at $94.86 a barrel |
| Tokyo – Nikkei 225 | UP 5.3% at 56,270.90 |
| Shanghai – Composite | UP 2.9% at 25,843.29 |
| Hong Kong – Hang Seng | UP 1.5% at 3,946.47 |
| Euro / Dollar | UP at $1.1685 from $1.1585 |
| Pound / Dollar | UP at $1.3413 from $1.3274 |
| Dollar / Yen | DOWN at 158.36 from 159.70 |
| New York – Dow (close) | DOWN 0.2% at 46,584.46 |
| London – FTSE 100 (close) | DOWN 0.8% at 10,348.79 |
After more than five weeks of conflict, markets welcomed the truce. Traders now watch whether the pause becomes a lasting de-escalation.
Reporting for Filmogaz.com.
