Oil prices just crashed—and stock markets soared—after Trump announced a two-week ceasefire with Iran.
Benchmark Brent crude fell below $100 a barrel, dropping roughly 14% to $94. That's the lowest since the early days of the war. UK wholesale gas prices plummeted more than 18%. The reason? News that Iran is reopening the Strait of Hormuz—the critical shipping lane for global oil and gas.
But don't celebrate at the pump just yet. Supply issues won't disappear overnight. Refineries need time to restart production. Farmers will likely face elevated fertilizer prices. Petrol and diesel will stay expensive for weeks at least.
The stock market reaction, however, has been massive. Japan's Nikkei jumped 5.5%. South Korea's Kospi surged nearly 7%. The UK's FTSE 100 is up over 2.3%.
Traders are also rethinking interest rate hikes. Before the war, cuts were forecast. Now? Only one hike is priced in for September.
A ceasefire doesn't fix everything—but markets are celebrating anyway. 📉🛢️📈
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