Oil prices drop and stock markets rally following US-Iran ceasefire agreement
On April 8, 2026, global oil prices fell by approximately 15% to below $100 per barrel after U.S. President Donald Trump announced a two-week ceasefire with Iran. This decision followed a proposal from Pakistan and occurred shortly before the expiration of a U.S. ultimatum regarding the closure of the Strait of Hormuz. Iran agreed to ensure safe passage through the critical maritime route, which had previously caused severe energy supply concerns. In response to the de-escalation, European and Asian stock markets recorded significant gains, with the STOXX 600, Nikkei, and Kospi indices posting substantial increases. European natural gas prices also fell by up to 20% in Amsterdam. While the market reaction has been positive, the ceasefire remains temporary and contingent upon future negotiations. Analysts warn that market volatility may persist depending on the outcome of further diplomatic talks.