Overview
- The two-week truce, announced Tuesday night by President Donald Trump and acknowledged by Iranian officials, is contingent on Iran enabling the complete, immediate and safe reopening of the Strait of Hormuz.
- Iranian foreign minister Abbas Araghchi said Tehran’s armed forces will cease defensive operations for the period and that safe passage for ships is possible under military coordination.
- Following Tuesday’s announcement, stocks jumped worldwide as U.S. futures rose roughly 2% to 3% and major Asian indexes gained 4% to 6%, while oil prices slumped with WTI near $97 and Brent around $96 a barrel.
- Investors still hedged against setbacks as gold climbed and U.S. Treasury yields fell, reflecting caution about whether the pause holds and whether energy flows normalize quickly.
- Talks are reported to start Friday, April 10, in Islamabad, and shipping data will be key since the Strait of Hormuz carries about one-fifth of global seaborne oil and restoring trapped cargoes and confidence could take weeks.