Following US President Donald Trump’s announcement of a two-week ceasefire with Iran, global financial markets have shown a strong positive reaction, with oil prices declining significantly and stock markets recording notable gains.
According to the ceasefire announcement, the United States has agreed to suspend attacks against Iran for two weeks, while both sides are moving toward a long-term peace agreement, boosting global investor confidence.
According to Arab media reports, Iran has also indicated that if attacks against it are halted, it will cease its actions and ensure safe passage of ships through the Strait of Hormuz, a critical route for global trade.
It is important to note that the Strait of Hormuz is one of the world’s most vital maritime routes, through which nearly one-fifth of the global oil and gas supply is transported, making it highly sensitive to disruptions.
After US and Israeli strikes on Iran at the end of February, Iran had effectively blocked this route, putting significant pressure on global markets and driving up energy prices.
Following the ceasefire news, US crude oil prices dropped by approximately 16.5 percent to around $94 per barrel, while S&P 500 futures rose by more than 2 percent. At the same time, the US dollar weakened, and investors shifted from safe assets back to equities.
According to Arab media, financial expert Jamie Cox stated that markets had already anticipated that Donald Trump was seeking a way out of the Iran conflict, and the latest announcement marks an important step in that direction.
Asian stock markets have also shown positive momentum, while US 10-year Treasury yields have increased, indicating a recovery in investor confidence.
It is worth noting that President Donald Trump stated that Iran’s 10-point proposal provides a workable foundation for negotiations, strengthening the prospects for a lasting peace agreement.
