The US and Iran have agreed to a framework deal that targets to end the long war and reopen the Strait of Hormuz, slightly easing worries about the rising cost of living for people in the US.
Experts warn that similar ceasefire hopes have happened before, but results were not always stable or long-lasting.
If the war truly ends, it could lead to lower oil prices, lower bond yields, and slower inflation, but this will not happen immediately.
Analysts predict that gas prices may come down due to reduced worries about oil supply, with Brent crude falling to about $82 per barrel and the average US gas price briefly falling to about $3.99 per gallon.
Lower oil and fuel prices can reduce transport and production costs, helping bring down prices of everyday goods, and could slow down inflation across the economy.
The recent oil price drop may be "transitory" relief, meaning inflation could calm down at least temporarily, giving the US Federal Reserve more confidence to pause interest rate hikes.
