Markets embrace Iran ceasefire news despite ongoing strikes

Oil prices plunged Wednesday, staying good supra pre-war levels but dropping beneath the $100 a tube mark, and stocks soared aft the United States and Iran said they had agreed to a two-week conditional ceasefire that should spot Tehran temporarily reopen the captious Strait of Hormuz.

U.S. West Texas Intermediate mislaid astir 20% and planetary benchmark Brent Crude lipid shed arsenic overmuch arsenic 16%, with some trading astir the $95 people aboriginal Wednesday arsenic investors heaved a immense suspiration of alleviation aft much than 5 weeks of warfare that has hammered supplies.

The euphoria sent planetary equities rocketing connected hopes the situation that has shocked the planetary system for much than a period volition travel to an end.

Stocks successful Seoul jumped 6.9% and Tokyo 5.4%, portion Taipei added much than 4% and Mumbai 3.8%. Hong Kong precocious much than 3%, portion Sydney, Shanghai, Bangkok, Manila, Jakarta, Singapore and Wellington were besides sharply higher.

London, Paris and Frankfurt extended the planetary rally, portion U.S. futures soared.

Middle East stocks besides rallied, with Dubai jumping 8.5%, the biggest intraday summation since December 2014, according to Bloomberg.

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A maritime monitoring work said Wednesday that vas question was resuming successful the Strait of Hormuz, with 2 ships moving done the captious waterway.

"Early signs of vas enactment are emerging successful the Strait of Hormuz pursuing a ceasefire," MarineTraffic said connected X.

"Initial movements are present being recorded," it said. "The Greek-owned bulk bearer NJ Earth crossed the Strait astatine 08:44 UTC, portion the Liberia-flagged Daytona Beach transited earlier astatine 06:59 UTC, soon aft departing Bandar Abbas astatine 05:28 UTC."

MarineTraffic said that "hundreds of vessels stay successful the region, including 426 tankers, 34 LPG carriers, and 19 LNG vessels, galore of which had been efficaciously stranded during the disruption."

Both ships that transited the strait connected Wednesday passed adjacent to Iran's Larak Island, which analysts person said the authorities is utilizing arsenic a "toll booth" to cod fees for harmless passage.

The Associated Press, citing a determination authoritative straight progressive successful the negotiations, said the program allows for some Iran and Oman to complaint fees for ships to transit the strait. The authoritative told the AP that Iran intended to usage the wealth from its fees for post-war reconstruction.

The United Arab Emirates said Wednesday day its aerial defenses fired astatine an incoming Iranian rocket barrage. And Kuwait's subject said its forces responded to an "extensive wave" of drone attacks.

A state processing installation successful Abu Dhabi was ablaze aft incoming Iranian fire, officials said. The occurrence stopped for a time, but past restarted.

Missile alerts were issued successful the United Arab Emirates, Israel, Saudi Arabia, Bahrain and Kuwait aft the ceasefire announcement. 

"Air defence systems are presently responding to a rocket threat," the UAE's exigency and catastrophe authorization said successful a post connected X. "Please stay successful a harmless determination and travel authoritative channels for warnings and updates."

Iran past said an lipid refinery came nether attack, with Iranian authorities TV reporting that an lipid refinery connected Iran's Lavan Island was attacked connected Wednesday. The study said firefighters were moving to incorporate the blaze but nary 1 had been hurt. It did not accidental who launched it.

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At slightest 3 explosions were heard astir Iran's Lavan Island Oil Refinery, the country's authorities media reported Wednesday, hours aft President Trump said the U.S. and Iran had agreed to a conditional two-week ceasefire.

It was not instantly wide whether U.S. oregon Israeli forces had launched caller attacks connected the island, which sits little than 10 miles disconnected Iran's seashore successful the Persian Gulf, westbound of the entranceway to the Strait of Hormuz.

Iran's Mehr quality bureau said respective explosions were besides reported connected Siri Island, southeast of Lavan and overmuch person to the rima of the Strait of Hormuz. It said the origin of the blasts remained unclear.

"Considering the request for some sides to adhere to the declared ceasefire, and according to the Armed Forces, immoderate aggression against the state volition beryllium met with a regrettable response," Mehr said.

Vice President JD Vance, who is connected a travel to Hungary, called the ceasefire a "fragile truce," adding that the Iranian overseas curate had responded favorably to the agreement, but that others successful the state had been "lying" astir what had been accomplished militarily and the ceasefire.

"This is wherefore I accidental this is simply a fragile truce," helium said. "You person radical who intelligibly privation to travel to the negotiating array and enactment with america to find a bully woody and past you person radical who are lying astir adjacent the fragile truths that we've already struck."

Vance said that if Iranians are consenting "in bully religion to with us," helium believes they tin marque an agreement. 

"What the President has besides shown is that we inactive person wide military, diplomatic and, possibly astir importantly, we person bonzer economical leverage," Vance said. "So the President has told america not to usage those tools. He's told america to travel to negotiating table. But if the Iranians don't bash the nonstop aforesaid thing, they're going to find retired that the President of the United States is not 1 to messiness around. He's impatient. He's impatient to marque progress." 

The EU's apical diplomat described the U.S.–Iran statement connected Wednesday arsenic "a measurement backmost from the brink."

"It creates a much-needed accidental to code down threats, halt missiles, restart shipping, and make abstraction for diplomacy towards a lasting agreement," said Kaja Kallas, who is vice president of the European Commission and the EU precocious typical for overseas affairs and information policy.

She said she spoke to Pakistan's overseas curate and thanked him for securing the deal, but urged that "the doorway to mediation" stay open, "as the underlying causes of the warfare stay unresolved." 

European Commission President Ursula von der Leyen said she welcomes the ceasefire, which "brings much-needed de-escalation."

She besides said she thanked Pakistan for mediating, adding, "Now it is important that negotiations for an enduring solution to this struggle continue."

Egypt's overseas ministry called the U.S.-Iran ceasefire statement "a important step" toward ending the warfare permanently connected Wednesday, with a spokesperson saying Cairo would question to capitalize connected the diplomatic momentum.

"The determination by the United States and Iran to hold to a ceasefire is simply a important measurement towards de-escalation successful the region. We indispensable present let diplomacy to instrumentality its course. We shall proceed to uphold our religion successful diplomacy and let dialog to prevail," the spokesperson told CBS News, adding that Egypt would "exert its utmost efforts to capitalize connected this affirmative momentum to diffuse existing hostility and bring the warfare to a implicit end."

Iran's Supreme National Security Council shared a agelong connection connected Tuesday lauding the conditional ceasefire statement with Washington arsenic a "great victory" 38 days aft the U.S. and Israel launched their associated warfare connected the Islamic Republic.

An English mentation of the connection posted online by Iran's semi-official Tasnim quality agency, which is affiliated with the country's almighty Islamic Revolutionary Guard Corps, said Tehran had "forced the transgression America to judge its 10-point plan, successful which the United States is committed successful rule to guaranteeing non-aggression, continuing Iranian power implicit the Strait of Hormuz, accepting (uranium) enrichment, lifting each superior and secondary sanctions, terminating each resolutions of the UN Security Council and the IAEA Board of Governors, paying compensation to Iran, withdrawing American combat forces from the portion and stopping the warfare connected each fronts, including against the heroic Lebanese Islamic absorption [Hezbollah]."

The Council's connection added that, "until the details of this triumph are finalized, determination is inactive a request for perseverance and prudence connected the portion of the authorities."

A antheral waves a nationalist emblem arsenic radical stitchery successful Tehran's Revolution Square aft the United States and Iran agreed to a two-week ceasefire, April 8, 2026. ATTA KENARE/AFP/Getty

Announcing the statement connected his Truth Social platform, President Trump called the 10-point plan, which was conveyed earlier successful the week to Washington by Pakistani intermediaries,  "a workable ground connected which to negotiate."

"Almost each of the assorted points of past contention person been agreed to betwixt the United States and Iran, but a 2 week play volition let the Agreement to beryllium finalized and consummated," Mr. Trump said.

President Trump said Tuesday that helium had agreed to a "double sided CEASEFIRE" with Iran, little than 2 hours before his deadline for Iran to marque a woody with the U.S. oregon look monolithic strikes connected its powerfulness plants and bridges. 

"I hold to suspend the bombing and onslaught of Iran for a play of 2 weeks," the Mr. Trump wrote connected Truth Social, arguing that the U.S. had "already met and exceeded each Military objectives."

He said the ceasefire, which helium agreed to astatine Pakistan's request, was "subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz."

Iranian Foreign Minister Seyed Abbas Araghchi confirmed that Iran had agreed to halt "defensive operations," apt referring to its drone and rocket strikes connected U.S. allies successful the region, if the U.S. stops attacking Iran. 

Araghchi said Iran's equipped forces would coordinate "safe transition done the Strait of Hormuz," but it was unclear what that coordination mightiness involve. Analysts accidental Iran has, for the past week oregon more, allowed prime vessels to transit the strait for hefty fees, utilizing its Larak land arsenic a "toll booth."