Global markets reacted sharply after President Donald Trump announced a pause in the US attacks on Iran, just before his 8 PM ET deadline on Tuesday. There was a steep decline in oil prices as equity markets futures surged.
Iran is yet to respond to Trump's message about the ceasefire. Trump said he agreed to suspend the bombing and attack of Iran for a period of two weeks, subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.
US crude benchmarks fell significantly following the announcement, with West Texas Intermediate (WTI) dropping sharply, with prices sliding toward the $103–$105 range shortly after markets opened.
The decline, estimated between 7% and 9%, reflects expectations that Gulf oil and gas exports could stabilize if tensions continue to ease.
