Ceasefire Sparks Market Rally and Oil Price Drop

Global shares soared on Tuesday, and the dollar dipped following the implementation of a ceasefire to end the 12-day conflict between Iran and Israel. Oil prices plummeted to two-week lows, easing fears of supply disruptions. The truce was welcomed by U.S. President Donald Trump, who urged adherence to the agreement.

The halt in hostilities saw a notable drop in oil prices, with U.S. crude futures falling by 3.7% to $65.96 per barrel. The decline in oil prices followed Iran's limited retaliation against a U.S. base, indicating a cessation of immediate threats to the crucial Strait of Hormuz shipping route. Analysts now expect market attention to pivot toward impending tariff deadlines.

The anticipation of swift resolutions in trade and tariff disputes fueled rallies in risk assets. S&P 500 futures went up by 0.6% while Nasdaq futures increased by 0.9%. European and Asian markets mirrored these gains as investors took on a risk-on sentiment, encouraged by encouraging geopolitical developments and economic indicators.

(With inputs from agencies.)