Oil prices crashed more than 16% and global stocks surged after the United States and Iran agreed to a two-week ceasefire that reopens the critical Strait of Hormuz shipping lane.
US crude futures fell to $94-96 per barrel while Brent crude dropped to around $93-95, still above pre-conflict levels. Asian markets rallied sharply, with South Korea's Kospi jumping 5.8% and Japan's Nikkei climbing 5%. US stock futures rose over 2%.
The agreement came after President Donald Trump announced he would suspend threatened attacks on Iranian infrastructure in exchange for Iran guaranteeing safe passage through the Strait of Hormuz. The waterway carries approximately one-fifth of global oil and gas trade.
It is emphasised that this does not signify the termination of the war. Our hands remain upon the trigger, and should the slightest error be committed by the enemy, it shall be met with full force.
Iranian Supreme National Security Council statement
Iranian Foreign Minister Abbas Araghchi confirmed his country's armed forces would cease defensive operations during the two-week period. The announcement followed Pakistan's diplomatic intervention, with Prime Minister Shehbaz Sharif urging both sides to extend negotiations.
Frames the story primarily through market impact and diplomatic mechanics, emphasizing the temporary nature of the agreement and analyst skepticism. The UK perspective focuses on economic implications rather than geopolitical positioning, reflecting Britain's role as a financial hub concerned with energy market stability.