Oil Prices Crash 14 Percent as Global Stocks Rally After US Iran Ceasefire

New York, April 8: Global oil prices witnessed a sharp decline while stock markets surged after the United States and Iran agreed to a temporary ceasefire that includes reopening of the strategically vital Strait of Hormuz.

Crude oil prices dropped dramatically by around 14 percent, falling below the 100 dollar per barrel mark, marking one of the steepest single day declines in recent years.

The sudden fall came after weeks of elevated prices driven by disruptions in supply due to the conflict in the Middle East, particularly the closure of the Strait of Hormuz, a key global oil transit route.

At the same time, global equity markets responded positively to the easing tensions, with major Asian indices posting strong gains.Japan’s Nikkei rose nearly 4.8 percent, while South Korea’s Kospi surged up to 5.6 percent following the announcement.

US stock futures also jumped, with the S and P 500 futures rising over 2 percent and Dow futures showing strong upward movement, reflecting renewed investor confidence.Market analysts said the ceasefire reduced fears of prolonged supply disruptions and inflationary pressures linked to high energy prices.

The reopening of the Strait of Hormuz is seen as a crucial factor behind the market rebound, as the route handles a significant share of global oil shipments.

Earlier, the blockade of the strait had severely impacted oil flows, pushing prices to multi year highs and triggering volatility across financial markets.The ceasefire agreement has now allowed limited passage of oil shipments, offering immediate relief to energy markets.

Experts, however, caution that the situation remains fragile, and the price stability will depend on whether the ceasefire holds.