Trump Announces Iran Ceasefire, Oil Falls, Stocks Surge

President Donald Trump announced a two-week ceasefire with Iran on Wednesday, averting escalation just under 90 minutes before a self-imposed deadline for the country to reopen the Strait of Hormuz and allow oil tankers to pass through the Persian Gulf. The move triggered sharp declines in oil prices and surges in global stock markets, signaling investor relief amid the ongoing conflict that began with U.S. and Israeli attacks in late February.

Benchmark U.S. West Texas Intermediate crude fell 17.7 to settle at 92.92 per barrel, while Brent crude, the global standard, dropped 16.1 to 91.68 per barrel. Prices had spiked above 119 earlier in the week amid fears of prolonged disruptions, but the announcement reversed much of the recent climb. The Strait of Hormuz, which handles about 20 percent of the world's seaborne oil supply, had been effectively closed, contributing to supply shortages estimated at nearly 1 billion barrels by month's end. Iran agreed to the temporary pause, which includes coordinating vessel transits with its forces and formalizing fees for passage, though details remain unclear. The deal, mediated in part by Pakistan, is conditional on halting all attacks...