Global markets react strongly after presidential term ends Donald Trump Just before the 8pm ET deadline on Tuesday, Trump announced a pause in U.S. attacks on Iran. Oil prices fell sharply as stock market futures soared. Iran has yet to respond to Trump’s message about a ceasefire.
Trump’s remarks on ceasefire
Announcing the two-week ceasefire, Trump said: “Based on my conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir of Pakistan, who asked me to postpone sending destructive forces to Iran tonight, and subject the Islamic Republic of Iran to agree to the full, immediate and safe opening of the Strait of Hormuz, I have agreed to a two-week moratorium on bombings and attacks against Iran. It will be a bilateral ceasefire!”
He further added that the United States had “met and exceeded” all military objectives. We are “working towards a final agreement for long-term peace with Iran and peace in the Middle East.”
“We received Iran’s 10-point proposal and believe it is a viable basis for negotiations. Nearly all points of past contention between the United States and Iran have been agreed upon, but two weeks will allow the agreement to be finalized and refined. On behalf of the United States of America, as President, and on behalf of the countries of the Middle East, I am honored that this long-standing issue is about to be resolved. Thank you for your attention to this matter!”
Oil prices fall
The U.S. crude benchmark fell sharply following the news. West Texas Intermediate crude oil (WTI) fell sharply, with prices sliding towards the $103 to $105 range shortly after the opening bell.
A decline of 7% to 9% is expected, reflecting expectations that Gulf oil and gas exports may stabilize if tensions continue to ease.
Stocks soar, safe-haven assets rise
Stocks rose on the news, with S&P 500 futures up around 1.6% as investors returned to risk assets. Asian markets also rose after weeks of pressure from rising oil prices and geopolitical uncertainty.
Meanwhile, U.S. Treasury futures rose, suggesting demand for bonds remains strong despite an improvement in overall sentiment.
Read more: ‘Civilization does not die by bombing’: Iranian embassy responds to Trump’s threats
Currency and cryptocurrency markets also join rally
The shift in sentiment extends to currencies and digital assets. The Australian dollar rose more than 0.8% against the U.S. dollar, while the euro rose against the U.S. dollar.
Cryptocurrencies were also higher, reflecting renewed risk appetite among investors as they look to avoid broader regional conflict.
What caused oil prices to plummet?
At its core, falling oil prices are tied to one key factor: reduced supply risks.
With the Strait of Hormuz no longer facing immediate disruption and a temporary ceasefire, traders are recalibrating their expectations for global oil flows.
