Global Markets Rally as US-Iran Ceasefire Eases Energy Supply Fears

New York. A wave of relief has swept through the global economy following a two-week ceasefire agreement between Iran and the United States. Crude oil prices plummeted on Wednesday, and stock markets worldwide surged, fueled by hopes that the Strait of Hormuz will reopen, easing oil and gas supplies.

Tensions, which escalated after US and Israeli strikes on Iran in late February, had effectively paralyzed this strategic waterway—which carries 20 percent of the world's fuel—leading to weeks of market volatility and uncertainty.

President Donald Trump announced the ceasefire just two hours before his deadline to destroy Iranian civilian infrastructure was set to expire. The news had an immediate, dramatic impact on the markets.

US crude oil futures fell 15 percent to $96.31 per barrel, while Brent crude dropped 13 percent to $95.36 per barrel. Investors are optimistic that lower oil prices will help bring inflation under control.

In the stock markets, US S&P 500 futures rose 2 percent, while European markets climbed more than 5 percent. In Asia, Japan's Nikkei surged 5 percent and South Korea's Kospi jumped 6 percent, triggering temporary trading halts.

The US dollar, often considered a safe haven during wartime, has declined as investors shift toward riskier assets. The Australian dollar and the euro have also seen improvements.

Market experts suggest that whether this is immediate relief or the start of lasting peace will depend on the upcoming two weeks of negotiations. According to Saxo Bank strategist Charu Chanana, the long-term direction of the market will be determined by how quickly insurance companies and tanker operators regain confidence in shipping through the Strait of Hormuz.

Some analysts have warned that the recovery could be short-lived, as the root causes of the conflict remain unresolved. However, the decline in US Treasury note yields has revived hopes that the Federal Reserve may cut interest rates later this year.