US-Iran Ceasefire Spurs Market Rally, Oil Drop

Global financial markets surged on Wednesday after the United States and Iran announced a conditional two-week ceasefire, easing immediate fears of escalation in the Middle East and triggering a sharp decline in oil prices.

The agreement, revealed late Tuesday by U.S. President Donald Trump in a social media post, suspends American attacks on Iran in exchange for Tehran ensuring the safe reopening of the Strait of Hormuz, a vital shipping route for about one-fifth of the world's oil and gas. Trump described the pause as a "double sided CEASEFIRE," contingent on the "COMPLETE, IMMEDIATE, and SAFE OPENING" of the strait. Iranian Foreign Minister Abbas Araghchi confirmed that, if hostilities ceased, Iranian forces would halt defensive operations and allow coordinated passage through the waterway for the two-week period, subject to technical constraints.

The announcement came amid weeks of tension following the conflict's escalation in February, which had paralyzed tanker traffic through the strait since early March due to threats from drones and projectiles. Oil prices, which had climbed above $110 per barrel earlier in the week amid supply disruption concerns, plunged more than 13...