New York — Stock markets are rising around the world, and oil prices are falling again towards $90 a barrel after President Donald Trump backed down from his threat to force “an entire civilization” to die in war with Iran. S&The P 500 index jumped 2.7% after Trump, Iran and Israel agreed to a two-week ceasefire, just hours before Trump’s deadline for Iran to open the Strait of Hormuz and allow oil to flow freely again from the Persian Gulf to customers around the world. The Dow Jones Industrial Average jumped 1,350 points, and the Nasdaq Composite rose 3.4% after bigger gains in European and Asian markets.
This is a breaking news update. The previous AP story follows below.
Wall Street rose in pre-opening trading on Wednesday as oil prices fell below $100 after the US-Iran deal. To a two-week ceasefire Including the reopening of the Strait of Hormuz.
S futures contracts&The P 500 jumped 2.7% before the opening bell and the Dow Jones Industrial Average rose 2.6%. Nasdaq futures rose 3.4%.
Benchmark US crude fell $18.43 to $94.52 per barrel, a decline of nearly 16%. International benchmark Brent crude fell $15.54 to $93.73 per barrel. Natural gas futures fell nearly 5%.
The declines reflected some of the rises in oil prices since the start of the war more than five weeks ago that have effectively blocked passage through the strait, a crucial route for global supplies.
For now, market analysts see the ceasefire as more of a postponement than a resolution.
“However, the prevailing mood remains one of cautious optimism rather than outright celebration,” said Tim Waterer, chief market analyst at KCM Trade. “The ceasefire is only two weeks long, and markets will be watching closely to see whether shipping through the Strait of Hormuz returns to normal as promised and whether the fragile truce can pave the way for a more sustainable peace agreement,” he added.
late Tuesday, Trump said he refrained from his threatened attacks On Iranian bridges, power plants, and other civilian targets. The Iranian Foreign Minister said that passage through the strait will be allowed during the next two weeks under Iranian military administration.
But analysts warned against being overly optimistic.
“There is reason for optimism, but it is still too early to tell, because, you know, it is Trump,” said Takashi Hiroki, chief strategist at Monex.
US Treasury yields fell as lower oil prices could ease some concerns in the bond market about a spike in inflation. The yield on the 10-year Treasury note fell to 4.24% from 4.30% on Tuesday.
In stock trading, shares of major US airlines rose due to the sharp decline in oil prices. Delta and United shares jumped more than 12% in the premarket, while American shares rose 10%. Delta on Wednesday also reported first-quarter sales and earnings that came in ahead of Wall Street expectations, and said demand remains strong with the summer travel season still just a few months away.
Companies operating in the energy sector declined with the decline in oil prices. Exxon Mobil and ConocoPhillips lost nearly 6%, while Chevron shares fell 4.6%.
Elsewhere, in Europe, France’s CAC 40 added 4.5% by midday, while Germany’s DAX rose almost 5%. The British FTSE 100 index rose 2.9%.
In Asia, Japan’s Nikkei 225 rose 5.4% to close at 56,308.42. Australia S&The P/ASX 200 index jumped 2.6% to 8,951.80 points. South Korea’s KOSPI index rose 6.9% to 5872.34. Hong Kong’s Hang Seng Index rose 3.1% to 25,893.02, while the Shanghai Composite Index added 2.7% to 3,995.00.
In currency trading, the US dollar fell to 158.39 Japanese yen from 159.52 yen on Wednesday. The price of the euro reached $1.1701, up from $1.1597. The dollar usually becomes a safe haven during geopolitical uncertainty, so the ceasefire agreement worked to reduce this appeal.
___
Associated Press videographer Mayuko Ono in Tokyo and writer Jon Gambrell in Dubai, United Arab Emirates, contributed to this report.
Yuri Kageyama is in the topics: https://www.threads.com/@yurikageyama