Oil prices slide, stocks surge as Trump announces two-week Iran ceasefire

Investors welcome the possible resumption of oil and gas flows through the Strait of Hormuz.Oil prices have dived, bonds rallied, and stocks surged as a two-week ceasefire involving Iran spurred a relief rally, with investors cheering the possible resumption of oil and gas flows through the Strait of Hormuz.US President Donald Trump said late on Tuesday that he had agreed to suspend attacks on Iran for two weeks, adding that a long-term peace agreement was in progress.Recommended Stories list of 1 itemlist 1 of 1Iran agrees to open Strait of Hormuz for two-week US ceasefireend of listIran said it would halt its attacks if those against it stopped, and that safe transit through the Strait ‌of ⁠Hormuz would be possible for two weeks in coordination with the Iranian Armed Forces.Global markets have been rattled since the US and Israel attacked Iran at the end of February, prompting Tehran to effectively close the Strait of Hormuz, a key waterway used to transit one-fifth of the world’s oil and gas.US crude futures fell about 16.5 percent to $94 a barrel, S&P 500 futures leapt more than 2 percent, and the dollar fell broadly on Wednesday, having been a haven for investors during the turmoil.“Markets have been predicting that Trump was looking for an off-ramp in Iran,” said Jamie Cox, managing partner at Harris Financial Group. “Today, he got one and took it.”Futures pointed to broad gains in Asia’s stock markets, which have been hit by the war and soaring energy prices, while 10-year US Treasury futures rose about 15 ticks.‘It’s a good start’The announcement was made on social media, where Trump had on Tuesday written that “a whole civilisation will die tonight” if his demands were not met.