Financial markets rallied Tuesday after US President Donald Trump announced a ceasefire agreement between Iran and Israel, offering investors a temporary reprieve from escalating tensions in the oil-rich Middle East.
The announcement raised hopes of an immediate de-escalation in the Israel-Iran conflict, which had threatened to spiral into a broader regional crisis after the US launched airstrikes on Iranian nuclear sites over the weekend.
US equities surged on the news. The Dow Jones Industrial Average climbed 1.2 percent, the S&P 500 gained 1.1 percent—coming close to a record high—and the Nasdaq advanced 1.4 percent.
Easing fears over a wider Middle East conflict also pushed oil prices lower. West Texas Intermediate crude fell 3.7 percent to $65.96 a barrel, while Brent crude dropped 3.5 percent to $68.98.
Asian and European markets advanced earlier Tuesday as they started the trading day with news of Trump’s ceasefire claim. Japan’s Nikkei rose 1.3 percent in early trading, South Korea’s Kospi jumped 2.3 percent, and Australia’s S&P/ASX 200 index added 1.0 percent.
