Market Rollercoaster: Oil Dives Amid US-Iran Ceasefire
Global markets experienced significant shifts with oil prices tumbling, shares surging, and the dollar dropping following a ceasefire announcement by US President Trump between Israel and Iran. The ceasefire alleviated immediate geopolitical tensions, causing investor confidence to rise. However, bond markets diverged as focus shifted to Germany's draft budget.
In a dramatic turn of events, oil prices plummeted by 3% while global shares soared after U.S. President Donald Trump announced a ceasefire between Israel and Iran. This announcement came shortly after the U.S. had targeted Iran's nuclear sites the previous weekend.
Despite a brief Iranian retaliation against a U.S. base, the mood in the markets remained buoyant. Brent futures dropped to their lowest level since June 11, stabilizing at $69.11 a barrel. U.S. crude futures also took a hit, settling at $66.32 a barrel.
Investors, largely unperturbed by Israeli Defence Minister Israel Katz's orders for military strikes on Tehran, saw a rally in risk assets. While the bond market was influenced by Germany's new budget plans, attention remains on upcoming Federal Reserve rate decisions and global economic indicators.
(With inputs from agencies.)
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