Web Desk: Global energy markets plummeted and stock indices surged Wednesday after United States President Donald Trump and Iranian officials announced a Pakistani-brokered two-week ceasefire, averting an imminent large-scale military escalation.
The diplomatic breakthrough followed intense mediation efforts by Pakistan’s Prime Minister Shehbaz Sharif and Field Marshal Asim Munir. Their intervention led to a temporary halt in hostilities, contingent on the immediate and safe reopening of the Strait of Hormuz—a vital maritime artery through which 20% of the world’s oil flows.
Following the announcement, international oil prices reacted sharply to the de-escalation. The global benchmark Brent crude fell approximately 15.9% to reach $92.30 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude dropped nearly 16.5%, trading around $93.80 per barrel. Despite this steep decline, analysts noted that prices remain significantly higher than the $70 per barrel range recorded before the conflict intensified in late February.
In contrast to the cooling energy markets, global equity markets rallied on the prospect of regional stability. In the Asia-Pacific region, Japan’s Nikkei 225 index jumped 4.5%, while South Korea’s Kospi index soared by 5.5%. Investors welcomed the relief after weeks of volatility triggered by Iranian threats to block shipping lanes and subsequent U.S. warnings of retaliatory strikes on Iranian infrastructure.
President Trump confirmed via his Truth Social account that he is suspending planned strikes against Iranian targets for 14 days. This window aims to allow both nations to negotiate a long-term resolution based on a 15-point U.S. framework and a 10-point Iranian counter-proposal.
Tehran signaled its commitment to the truce through a statement from Foreign Minister Abbas Araghchi, who confirmed that Iranian forces would cease defensive operations if external attacks stop. However, the Iranian military maintained that safe passage through the Strait of Hormuz during this period would require close technical coordination with its naval forces.
Formal peace talks between the two nations are scheduled to begin Friday, April 10, in Islamabad, cementing Pakistan’s role as the primary intermediary in the crisis.
Read more: Strait of Hormuz to reopen as Iran and US agree to two-week ceasefire
