Oil prices plunged sharply, and stock markets surged on Wednesday, April 8, after the United States (U.S) and Iran agreed to a conditional two-week ceasefire deal that includes the reopening of the key Strait of Hormuz waterway.
The price of benchmark Brent crude fell by about 13% to $94.80 (£70.73) a barrel, while U.S-traded oil was more than 15% lower at $95.75.
But oil prices remain higher than before the conflict started on 28 February.
At the time, it was trading at around $70 a barrel.
The cost of energy has jumped as oil and gas supplies from the Middle East have been severely disrupted after Iran threatened to attack ships trying to use the Strait in retaliation for U.S. and Israeli airstrikes.
Stock markets in Europe opened higher following sharp rises in Asia.
London’s Financial Times Stock Exchange (FTSE) 100 share index jumped by 2.53% in opening trade.
In France, the Cac gained 4% while Germany’s Dax rose by nearly 5%.
Japan’s Nikkei 225 gained by 5% while South Korea’s Kospi jumped by nearly 6%.
Hong Kong’s Hang Seng was up by 2.8%, while the ASX 200 in Australia gained 2.7%.
In the case of U.S stock futures, they can indicate the direction of the market before it opens.
In a social media post, Trump said: “I agree to suspend the bombing and attack of Iran for a period of two weeks… subject to the Islamic Republic of Iran agreeing to the complete, immediate, and safe opening of the Strait of Hormuz.”
Iranian Foreign Minister Abbas Araghchi said on social media that Tehran will agree to a ceasefire if attacks against Iran are halted, adding that safe passage through the Strait of Hormuz will be possible.
Asian countries, including India, Malaysia, and the Philippines, have negotiated safe passage for their vessels in recent weeks.
China has also acknowledged that several of its ships have crossed the strait since the war began.
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