Markets Rally on US-Iran Ceasefire; Oil Plunges

Global markets surged in a sharp relief rally on Wednesday following the announcement of a conditional two-week ceasefire between the United States and Iran, easing fears of prolonged disruptions to oil supplies through the Strait of Hormuz. The agreement, brokered after U.S. and Israeli forces initiated attacks on Iran on February 28, includes a pause in U.S. strikes and Iran's commitment to allow safe passage for vessels during the period. Trading activity reflected widespread optimism, with the Nasdaq Composite returning to its pre-conflict level and the S&P 500 climbing close behind, while European indices like the Stoxx Europe 600 rose 3.8 percent and Germany's DAX gained 4.4 percent.

Oil prices plunged in response, with U.S. crude falling 20 percent from its war peak and marking the largest daily decline in five years. Brent crude settled below 95 dollars a barrel after dropping 15 percent in recent days, reversing a spike driven by the six-week conflict. However, traffic through the Strait of Hormuz remained minimal, with only three ships observed departing the region on Wednesday, according to tracking data. Iranian officials have warned vessels to follow specific...