Trump Announces Two-Week Ceasefire with Iran, Stocks Rise Amid Falling Oil Prices

US President Donald Trump Announces Two-Week Ceasefire with Iran

A two-week ceasefire between the US and Iran has been announced, with both parties agreeing to suspend attacks on each other. The agreement was made public by Trump on social media, who stated that a long-term peace agreement is in progress.

As part of the agreement, Iran has indicated that it will halt its attacks if those against it stop, and that safe transit through the Strait of Hormuz will be possible for two weeks in coordination with the Iranian Armed Forces. The US had previously attacked Iran at the end of February, prompting Tehran to effectively close the Strait of Hormuz, a key waterway used to transit one-fifth of the world’s oil and gas.

The announcement has led to a relief rally in global markets, with oil prices falling 16.5 percent to $94 a barrel, S&P 500 futures surging more than 2 percent, and the dollar falling broadly. Futures pointed to broad gains in Asia’s stock markets, which have been impacted by the war and soaring energy prices.

The US-Israel war on Iran saw significant monthly oil price rises, with a 50 percent increase in March. Trump stated that the US had received a 10-point proposal from Iran, which he called a workable basis to negotiate. The parties are reportedly very far along in reaching a definitive agreement for long-term peace.

Source: Al Jazeera