U.S. stock futures jumped higher and oil prices plunged after President Trump announced a two-week ceasefire and a potential longer peace deal with Iran on Tuesday night.
Futures indicated a two percent rise in the Dow Jones Industrial Average. S&P futures were up 2.3 percent and Nasdaq futures were up nearly three percent.
Oil prices fell sharply. Brent crude futures fell by around 13.5 percent to $94.50 a barrel. West Texas Intermediate futures dropped 14.7 percent to $96.40 a barrel. U.S. natural gas prices dropped by 3.6 percent. U.S. home heating oil futures dropped by more than 18 percent.
Stocks in Asia rallied on the news. Japan’s Nikkei index rose five percent. Australia’s S&P/ASX climbed 2.65 percent. South Korea’s Kopsi index jumped 5.6 percent.Hong Kong’s Hang Seng Index futures were up 2.6 percent.
Trump said the ceasefire was “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 in a post on X on behalf of the country’s Supreme National Security Council said Tehran’s armed forces will “cease their defensive operations.” The Wall Street Journal reported that Iran’s Supreme National Security Council has said that peace talks with the U.S. will start Friday in Islamabad. It also said the ceasefire could be extended if necessary.
