U.S.-Iran Two-Week Ceasefire Triggers Global Market Relief Rally as Oil Prices Plunge

Global equity markets surged following a ceasefire agreement between the United States and Iran, which has now been confirmed for a specific two-week duration. This development has effectively paused immediate threats to energy infrastructure, providing a clearer timeframe for market de-escalation. European stocks are projected to open significantly higher on Wednesday as the region reacts to the removal of the risk premium associated with the Strait of Hormuz. Consequently, oil prices experienced a sharp correction, falling below the $100 per barrel mark after previously peaking above $115. Despite the positive momentum, the temporary nature of the two-week truce kept gold prices elevated and Treasury yields lower, reflecting investor caution. Analysts view this window as critical for mitigating global stagflation risks, though markets remain watchful of what follows the expiry of the agreement.