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Oil Plunges, Stocks Surge After Two-Week U.S.–Iran Ceasefire

Passage through the Strait of Hormuz will run under Iranian military coordination for now.

Overview

  • President Trump announced the pause late Tuesday on Truth Social after Pakistan’s leader mediated and he received a 10-point proposal from Iran.
  • Iran said tankers will be allowed through the Strait of Hormuz for two weeks under its armed forces’ coordination.
  • Crude fell about 15%–18% to the low $90s as Dow futures jumped roughly 1,200 points and the Nasdaq rose around 3%.
  • Investors bought airline and chip stocks and sold energy shares, and 10-year Treasury yields fell as lower oil prices eased inflation worries.
  • Ship trackers reported only early signs of movement, and a large tanker backlog plus damaged Gulf energy sites could slow a full restart through a strait that carries roughly one-fifth of global seaborne oil.