Athira Sethu
Kochi, 8 April 2026
Crude oil prices tumbled, stocks rallied and bond prices jumped after a two-week ceasefire between the US and Iran prompted a relief rally, as investors cheered the potential resumption of oil and gas shipments through the Strait of Hormuz.
According to US President Donald Trump, he agreed to suspend the attacks on Iran for two weeks. He further stated that discussions are being held for establishing a lasting peace treaty.
According to Iran, it will stop launching attacks if they are suspended by other countries and that the safe passage of ships through the Strait of Hormuz is feasible over the next two weeks, working in cooperation with the Iranian armed forces.
The global financial markets have been experiencing volatility following the attack on Iran by the US and Israel towards the end of February, resulting in an effective blockade of the Strait of Hormuz, which accounts for one fifth of the world’s oil and gas shipments.
US oil futures plunged 16.5 percent to $94 per barrel while S&P 500 futures climbed over 2 percent with dollar index dropping, amid its status as a safe-haven asset during the war.
The news was issued through social media, on which Trump wrote that “a whole civilisation will die tonight” if his demands were not fulfilled.
The ongoing dispute between the United States-Israel alliance and Iran resulted in the largest monthly increase in oil prices ever recorded, a 50% increase in March.
According to Trump, the United States was presented with a 10-point agreement from Iran, which, he described, was a starting point for the beginning of negotiations. Both parties were said to have been making substantial progress towards achieving a lasting peace agreement.
The short cessation in the hostilities resulted in lower oil prices, increased stock futures, and lower value of the dollar, indicating that the markets have responded well to the situation.
The markets seem to be responding to the two-week cease-fire, with lower oil prices, higher S&P futures, and expected gains by Asian markets. Futures on the Treasuries also rose.
The Strait of Hormuz continues to be safe to navigate through, coordinating efforts with the Iranians, while peace talks for an enduring deal continue.
