Ceasefire Triggers Market Surge: Oil Prices Drop Amid Gulf Tensions

Oil prices have fallen below USD 100 a barrel following a ceasefire between the US and Iran, prompting a rebound in Asian markets and US stock futures. The truce includes reopening the crucial Strait of Hormuz for at least two weeks, driving significant market shifts amid ongoing regional tensions.

In a surprising market shift, oil prices plunged below USD 100 a barrel after a ceasefire agreement between the United States and Iran. This development sparked a sharp recovery in Asian markets and US stock futures.

The agreement included the reopening of the critical Strait of Hormuz, facilitating the global supply chain of crude oil once again. Japanese and South Korean markets responded positively, with the Nikkei 225 and Kospi indices showing significant gains.

Despite these market rallies, ambiguity remains over the ceasefire's start date as regional tensions continue to flare, with attacks occurring across the Gulf even after the truce announcement.

(With inputs from agencies.)