Ahmed Kamel – Egypt Daily News
Global financial markets surged on Wednesday as President Donald Trump announced a temporary hold on threatened attacks against Iran, following Tehran’s agreement to a two-week ceasefire and the reopening of the strategically critical Strait of Hormuz. The announcement sent U.S. crude oil prices tumbling and stock futures sharply higher.
U.S. crude oil futures dropped 14.5% to $96.55 per barrel, marking the steepest single-day decline since the outbreak of hostilities in late February. While prices remain elevated compared to pre-war levels, the sudden drop reflects a temporary easing of fears over a full-scale escalation in the Gulf.
Stock markets also responded to the news. The S&P 500, which had swung down 1.2% earlier amid fears of imminent conflict, recovered to close with a modest gain of 0.1%. The Dow Jones Industrial Average dipped 85 points, or 0.2%, while the Nasdaq Composite edged up 0.1%. Traders cited the temporary ceasefire as a key factor calming investor nerves, after days of extreme volatility driven by uncertainty over the conflict’s trajectory.
The tense standoff followed Trump’s dramatic warning that a “whole civilization will die tonight, never to be brought back again” if Iran failed to meet his deadline to open the Strait of Hormuz. The threat had intensified market jitters, prompting significant swings in both oil and equities.
Diplomatic interventions played a critical role in averting an immediate escalation. Pakistan’s Prime Minister reportedly urged Trump to extend his deadline and requested that Iran maintain access to the strait for an additional two weeks. Meanwhile, Iran’s Supreme National Security Council confirmed it had accepted a two-week ceasefire, with its foreign minister assuring that maritime traffic through the Strait of Hormuz would continue under Iranian military oversight during this period.
Analysts caution that while the temporary truce has eased immediate market pressures, the situation remains fragile. “Markets are reacting positively to the ceasefire, but underlying geopolitical risks have not disappeared,” said Sarah McKinney, senior energy strategist at Global Insights. “Any misstep or renewed aggression could trigger volatility even greater than we’ve seen since February.”
Oil prices and equity markets are expected to remain sensitive to developments in the Gulf, especially with the war’s long-term trajectory still uncertain. For now, investors are taking comfort in the temporary pause, though many remain wary of renewed hostilities once the two-week period concludes.
