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Markets Surge as Iran-Israel Ceasefire Calms Global Tensions
Global markets rallied Tuesday morning following the announcement of a ceasefire between Iran and Israel, easing fears of prolonged conflict in the Middle East. U.S. President Donald Trump confirmed the truce via social media, stating, “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”
The news sent global equities soaring, with Asia-Pacific shares outside Japan jumping over 2%, and European indices like the Stoxx 600 gaining 1.3%. U.S. futures also pointed higher, with Nasdaq futures up 1.3% and S&P 500 futures rising 1%.
Meanwhile, oil prices tumbled as concerns over supply disruptions through the Strait of Hormuz subsided. Brent crude dropped nearly 3% to around $69.40 a barrel, while West Texas Intermediate fell to $66.48. Analysts noted that the rapid de-escalation erased much of the risk premium built into oil prices over the past week.
The ceasefire follows a tense 12-day conflict that included U.S. strikes on Iranian nuclear facilities and a limited Iranian response. With both sides signaling a pause, investors shifted focus back to economic fundamentals and upcoming central bank decisions.
As geopolitical risk recedes, attention now turns to Federal Reserve Chair Jerome Powell’s testimony before Congress, where markets will be watching for clues on potential interest rate cuts later this year.
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