Oil Prices Tumble, Global Stocks Surge After US-Iran Ceasefire Agreement.
Hargeisa (Horn post) Global oil prices dropped sharply, and stock markets surged worldwide after the United States and Iran agreed to a conditional two-week ceasefire, which includes the reopening of the strategically vital Strait of Hormuz.
Benchmark Brent crude fell more than 15%, dropping below $92 per barrel, while U.S.-traded crude declined to just under $94. Despite the steep fall, prices remain elevated compared with pre-conflict levels of around $70 per barrel recorded before tensions escalated on Feb. 28.
Energy markets had been under pressure in recent weeks as fears of supply disruptions intensified. The Middle East—one of the world’s most critical oil-producing regions—faced heightened instability after Iran threatened to target vessels transiting the Strait of Hormuz, a key global oil transit chokepoint, in response to U.S. and Israeli airstrikes.
The ceasefire agreement has eased immediate concerns over supply constraints, triggering a broad-based rally in global equities.
On Wall Street, major indexes opened higher. The Dow Jones Industrial Average and S&P 500 both rose more than 2.5%, while the tech-heavy Nasdaq Composite gained 3.3%.
European markets also posted strong gains. In London, the FTSE 100 climbed 3% in afternoon trading. France’s CAC 40 surged 4.9%, while Germany’s DAX advanced more than 5%.
Asian markets closed significantly higher earlier in the day. Japan’s Nikkei 225 jumped nearly 5.4%, South Korea’s Kospi rose more than 6.8%, and Hong Kong’s Hang Seng Index gained 3%. Australia’s ASX 200 also increased by 2.5%.
Analysts caution that while markets have reacted positively, uncertainty remains over the durability of the ceasefire. Any renewed escalation could quickly reverse gains in equities and send oil prices higher again.
Prepared by:
Horn post staff
