New York, Apr 8 : Oil prices plunged below USD 100 per barrel, while Asian markets and US stock futures surged after the United States and Iran agreed to a two-week ceasefire, including the reopening of the Strait of Hormuz.
Japan’s benchmark Nikkei 225 rose 4.8%, while South Korea’s Kospi gained 5.6%. Futures for the S&P 500 advanced 2.3% as of 9:30 pm EDT, and Dow futures climbed 2%.
US crude futures dropped sharply by 14.3% to $96.83 per barrel, while Brent crude, the international benchmark, fell 13.3% to $94.74. Oil prices had previously surged due to disruptions in production and transportation in the Persian Gulf amid the conflict. Much of the region’s oil passes through the Strait of Hormuz, which Iran had restricted for its adversaries.
Late Tuesday, US President Donald Trump said he was holding back on planned strikes targeting Iranian bridges, power plants, and other infrastructure. Iran’s foreign minister stated that passage through the strait would be permitted for the next two weeks under Iranian military supervision.
The sharp market movements mark the latest volatility since late February, driven by uncertainty over the duration of the conflict.
Despite the ceasefire announcement, neither side specified when it would take effect, and reports of attacks in Israel, Iran, and across the Gulf region continued early Wednesday. (Agency)
