Global markets embraced news of a conditional two-week ceasefire between the United States and Iran, leading to a sharp drop in oil prices and a significant rally in equities. West Texas Intermediate and Brent Crude oil prices fell, trading around the $95 mark, as investors reacted to the potential end of a five-week conflict that had impacted global supplies.
A man waves a national flag as people gather in Tehran's Revolution Square after the United States and Iran agreed to a two-week ceasefire, April 8, 2026. ATTA KENARE/AFP/Getty
Equities worldwide saw substantial gains, with Seoul, Tokyo, Taipei, and Mumbai leading the charge. European markets also extended the rally, and U.S. futures climbed. Middle East stocks, including Dubai, experienced significant intraday increases.
Shipping activity has reportedly begun to resume in the Strait of Hormuz, a vital waterway previously disrupted by the conflict. Maritime monitoring services indicated initial vessel movements, with tankers and other ships noted transiting the strait. Reports suggest Iran may charge fees for passage, potentially for post-war reconstruction.
Despite the ceasefire announcement, reports emerged of ongoing incidents, including UAE air defenses responding to missile barrages and Kuwaiti forces countering drone attacks. A gas processing facility in Abu Dhabi was reportedly ablaze after incoming fire, and an oil refinery on Iran's Lavan Island was also said to have been attacked.
Vice President JD Vance described the ceasefire as a "fragile truce," acknowledging that while some in Iran seek negotiation, others may be misrepresenting the agreement. He emphasized the U.S. retains significant military, diplomatic, and economic leverage.
European Union leaders welcomed the ceasefire as "a step back from the brink," highlighting the opportunity for de-escalation and diplomacy. Egypt's foreign ministry also termed the agreement "a significant step" toward permanently ending the war.
Iran's Supreme National Security Council declared the ceasefire a "great victory," stating Washington had accepted a 10-point plan that includes guarantees of non-aggression, continued Iranian control over the Strait of Hormuz, acceptance of uranium enrichment, sanctions relief, and compensation. President Trump characterized the plan as a "workable basis on which to negotiate."