By Our Correspondent
National News – Global oil prices have plunged and stock markets surged following a conditional two-week ceasefire agreement between the US and Iran, which includes the reopening of the strategically vital Strait of Hormuz.
Brent crude fell about 13% to $94.80 per barrel, while US oil dropped over 15% to $95.75, although prices remain above pre-conflict levels of $70 per barrel.
The ceasefire comes after Iran threatened attacks on ships using the strait in response to US and Israeli airstrikes.
European and Asian stock markets rose sharply after the announcement.
London’s FTSE 100 climbed 2.53%, Paris’s Cac gained 4%, and Germany’s Dax jumped nearly 5%.
In Asia, Japan’s Nikkei 225 increased 5%, South Korea’s Kospi 6%, Hong Kong’s Hang Seng 2.8%, and Australia’s ASX 200 2.7%.
US futures also indicated a higher open for Wall Street, reflecting investor optimism over restored energy flows and reduced conflict risk.
The deal, announced via social media by US President Donald Trump, required Iran to agree to “complete, immediate, and safe opening” of the Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi confirmed Tehran would halt attacks and allow safe passage if US strikes stop.
Analysts note that while tankers may resume transit, full energy production recovery in the Middle East could take months due to damage to infrastructure, estimated at over $25bn.
Asian nations, including India, Malaysia, the Philippines, China, and Japan, have negotiated safe passage for vessels amid disrupted supply.
The conflict had particularly strained Asia, where countries heavily depend on Gulf oil.
The Philippines even declared a national energy emergency in March after petrol prices more than doubled, while airlines raised fares due to jet fuel shortages.
Experts warn that while the ceasefire provides temporary relief and stabilizes markets, energy prices may remain elevated until a lasting peace deal is secured.
Rebuilding damaged infrastructure, including Qatar’s Ras Laffan industrial hub, could take years, underscoring the long-term economic impact of the Iran-US conflict.
