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Oil prices fall, stocks rally after Iran war ceasefire announcement
Oil prices fell and shares rallied on Monday after Washington and Tehran announced a tentative peace deal that would see the Strait of Hormuz reopened.
Brent crude oil — the international standard — fell more than 4% to $83.82 per barrel in early trading.
"Ships of the world, start your engines. Let the oil flow!" Trump posted on his Truth Social platform.
Stock markets also reacted positively to the news. In Asia, Japan's Nikkei and South Korea's KOSPI each gained more than 5%. On Wall Street, futures for the S&P 500 were up 1% and for the Dow Jones Industrial Average up 0.9%, pointing to likely early gains.
But it could still take months for oil prices to stabilize, while shipping and insurance companies will also want to be confident that this latest ceasefire announcement will hold.
"Markets are likely to be cautious in not over-extending optimism as they watch for an actual resumption of traffic across Hormuz," analysts from Japan's Mizuho Bank said in a commentary.
Meanwhile, as Europe woke up on Monday, European Central Bank President Christine Lagarde told France Culture radio ?that the ceasefire agreement reached ?with Iran ?was "good news."
