Ceasefire Boosts Global Markets as Oil Prices Slide

Global markets experienced an upswing on Tuesday following a ceasefire agreement between Israel and Iran, which prompted nearly a 4% drop in oil prices and a rally in global shares. The easing tensions allowed investors to overlook alleged violations by both sides, as stated by U.S. President Donald Trump.

Brent crude prices, which already fell by 7% on Monday, hit their lowest levels since June following minor retaliations from Iran and a pause in threats to the Strait of Hormuz. The improved investor sentiment fueled gains across various stock markets, despite the unease echoed by Trump's dissatisfaction with the ceasefire adherence.

While global equity markets thrived, the bond market turned its attention to Germany's draft budget, which requires higher borrowing for record investments. Investors are also eyeing U.S. Federal Reserve discussions, with potential interest rate cuts looming, influenced by signs of an economic downturn and market movements.

(With inputs from agencies.)