Global financial markets experienced a relief rally following the announcement of a ceasefire between Israel and Iran. U.S. President Donald Trump declared that both nations agreed to halt hostilities, with Israel stating that its military objectives had been achieved. Iran’s Foreign Minister Abbas Araqchi indicated that Tehran would cease retaliatory actions but remained prepared to respond to any further aggression from Israel.
The de-escalation led to a significant drop in oil prices, alleviating concerns over potential disruptions in the Strait of Hormuz, a critical channel for global oil shipments. Oil prices had initially surged due to fears of supply interruptions but began to decline after Iran’s limited response to U.S. actions signaled a potential cooling of tensions.
Investors are now turning their attention to upcoming economic indicators, particularly the testimony of Federal Reserve Chair Jerome Powell before Congress. Market participants are keen to gauge the Fed’s stance on interest rates amidst the evolving geopolitical landscape and its implications for global economic stability.
