NEW YORK, APR 8: Oil prices tumbled below USD 100 a barrel, while Asian markets and US stock futures surged after the US and Iran announced a two-week ceasefire, including the reopening of the Strait of Hormuz.
Japan’s Nikkei 225 jumped 4.8% and South Korea’s Kospi rose 5.6%. S&P 500 futures climbed 2.3% by 9:30 pm EDT, with Dow futures up 2%.
US crude futures plunged 14.3% to $96.83 a barrel, and Brent crude fell 13.3% to $94.74. Prices had spiked earlier due to the war disrupting Persian Gulf production and shipping, with Iran blocking the key strait to adversaries.
Late Tuesday, President Trump paused threats against Iranian bridges, power plants, and civilian targets. Iran’s foreign minister confirmed managed passage through the strait for two weeks.
These sharp swings mark the latest volatility since late February, driven by shifting war signals. Neither side specified a start date for the ceasefire, and attacks continued early Wednesday in Israel, Iran, and the Gulf.
US stocks had seesawed Tuesday amid Trump’s warning of total destruction if Iran missed his 8 pm EDT deadline. The S&P 500 dropped 1.2% before rallying on Pakistan’s prime minister urging a two-week extension, closing up 0.1%. The Dow fell 0.2% (85 points), and Nasdaq gained 0.1%.
Oil for May delivery hit $117 intraday before settling at $112.95, reflecting ongoing Gulf disruptions.
