Oil prices and Asian markets saw significant shifts Wednesday after the US and Iran agreed to a two-week ceasefire, which includes reopening the Strait of Hormuz. Brent crude traded at $92.99 per barrel, and WTI crude at $94.70. Wholesale gasoline was $2.94 per gallon. These moves followed US President Donald Trump's announcement to halt threatened strikes on Iranian civilian infrastructure. Iran's foreign minister confirmed the Strait of Hormuz would be open to shipping for two weeks under Iranian military management.
Asian markets surged, with Japan's Nikkei 225 up 5.0%, South Korea's Kospi up 5.9%, and Hong Kong's Hang Seng up 2.6%. European markets, however, declined, with the Stoxx Europe 600 down 6.82%, reflecting prior war-driven volatility. The S&P 500 showed a 3.81% drop in pre-market US trading.
Despite the ceasefire, markets remain cautious. Attacks were reported in the Gulf region, and the formal start of the truce is unspecified. The risk of prolonged disruption to Gulf oil flows continues to fuel concerns about elevated energy prices and global inflation.