00:00The US and Iran have agreed to a two-week ceasefire, and optimism is rippling across markets.
00:06Oil fell by the most in almost six years, stocks surged with bonds, and the dollar dropped
00:12after President Donald Trump agreed to suspend bombing Iran, and Tehran said safe passage for
00:18ships through the Strait of Hormuz would now be possible. That will help resume flows for
00:24roughly 20% of the world's oil, alleviating a supply crunch that threatened higher energy costs
00:30for businesses and households, pressure on government finances, and lower economic growth
00:37worldwide. For many investors, the ceasefire is a signal to buy stocks, beaten up currencies and
00:44gold which have fallen since the start of the war. The question now is what they need to see
00:49for the rally to extend. For strategists at Nomura and IG International, that's ships actually
00:55exiting the Strait. That would mean a resumption of normal oil, gas, and other deliveries which
01:01would lead to a sustained drop in energy prices. Others warn of road bumps ahead. Commonwealth
01:07Bank of Australia cautions there is no firm plan on how the war will end. Or Wells Fargo
01:13says that if nothing is signed on paper in the coming days, markets will be back where they
01:18were. So until there's stronger signals of a de-escalation, investors are likely to remain on alert.
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