Global Markets Rally as US-Iran Ceasefire Sends Oil Below $100

Global markets rallied after the United States and Iran agreed to a two-week ceasefire, easing tensions and supporting investor sentiment.

Oil prices dropped sharply, with West Texas Intermediate falling more than 14 percent to around $96.98 per barrel. Brent crude also declined by over 12 percent to about $96 per barrel, moving below the $100 mark.

Equity markets gained across regions. Japan’s Nikkei 225 rose around 4 percent, while South Korea’s Kospi surged more than 5 percent. Australia’s S&P/ASX 200 and Hong Kong’s Hang Seng Index also recorded strong gains.

In the United States, futures linked to major indices moved higher, with the Dow Jones Industrial Average futures rising over 2 percent, alongside gains in S&P 500 and Nasdaq futures.

Donald Trump said the ceasefire includes a temporary halt to planned military actions, subject to the reopening of the Strait of Hormuz.

Iran also signaled it would allow safe passage for ships through the strait during the two-week period, reducing concerns over global oil supply disruptions.

Despite the rally in equities, investors continued to show caution. Gold prices rose more than 2 percent to around $4,800 per ounce, while demand for U.S. government bonds increased, pushing yields lower.

Market analysts said the movement reflects a mix of relief and caution, as investors respond to reduced geopolitical risk but remain uncertain about long-term stability.

The ceasefire follows weeks of conflict that had pushed energy prices higher and increased volatility across global markets.

Analysts said the recent decline in oil prices may help ease short-term inflation pressures, though broader economic risks remain.