A ceasefire between the United States and Iran has eased market concerns after weeks of tension, sending global equities higher and crude prices lower.
The agreement, announced on April 7, calls for a two-week truce and was reached just ahead of a deadline set by President Donald Trump. Reports suggest Pakistan may have played a role in facilitating the deal. Under the arrangement, Iran is expected to pause defensive operations and coordinate safe passage through the Strait of Hormuz, while talks are expected to begin soon over a broader proposal that could include sanctions relief and a US withdrawal.
Crude oil prices have tumbled below $100 per barrel, delivering a sharp relief rally to global markets after weeks of war-driven volatility.
Brent crude settled near $94–95, down over 13%, while West Texas Intermediate fell around 14% to the $96–97 range. Crude futures also hit intraday lows near $91 after opening close to $109, marking one of the steepest daily drops in recent years.
Asian markets jumped sharply, with major indices across Japan, South Korea, Hong Kong, Taiwan, and Australia posting strong gains, while markets in Southeast Asia also rose broadly.
In India, early indicators pointed to a strong market opening, with volatility easing significantly. Energy shares weakened following the drop in oil prices, while broader indices benefited from improved sentiment and lower input costs.
Energy stocks declined amid the sharp fall in crude, but airlines and other sectors gained on expectations of lower fuel costs and easing geopolitical risks. Analysts, however, urge caution, noting that the truce is temporary and key issues remain unresolved.
Read Article: India’s Services PMI Hits 14-Month Low Amid Middle East Tensions
