Major Gulf markets are rallying after the United States and Iran confirmed a ceasefire agreement. The deal includes the immediate reopening of the strategically vital Strait of Hormuz.
Regional indices, including Saudi Arabia's Tadawul and Dubai's DFM, are posting gains. This reverses a recent downturn caused by escalating geopolitical tensions.
Crude oil prices have declined in response. U.S. futures are trading near $80.54 per barrel, with Brent crude at $83.58. The drop reflects a reduction in risk premiums tied to Middle East instability.
The positive market reaction, however, comes with caution. The current agreement is temporary, with a 60-day window for negotiations on a permanent deal. Market participants are closely watching these talks for any sign of volatility.