Trump Pauses Iran Attacks, Oil Drops 16% Markets Surge
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- Trump announced on Truth Social that he would suspend planned attacks on Iranian infrastructure for two weeks, contingent on Iran’s immediate and safe opening of the Strait of Hormuz.
- Abbas Araghchi said Tehran’s armed forces would cease defensive operations and that safe passage through the Strait of Hormuz would be possible for the next two weeks.
- West Texas Intermediate crude oil fell more than 16% to $94.71 per barrel after the announcement.
- Brent crude oil lost more than 14.9% to $93 per barrel.
- Kospi surged almost 7% to close at 5,872.34, while the Kosdaq rose 5.12% to 1,089.85.
- Nikkei gained 5.39% to 56,308.42, and the Topix rose 3.32% to 3,775.3.
- Josh Rubin of Thornburg Investments noted that lower energy prices improve inflation outlook and bolster expectations for central‑bank rate cuts.
Why it matters: The two‑week ceasefire slashed crude prices, cutting WTI to $94.71 and Brent to $93, which lifts Asian equities—South Korea’s Kospi up 7% and Japan’s Nikkei up 5%—while easing inflation pressure and bolstering expectations for central‑bank rate cuts; the rally also lifted Hong Kong’s Hang Seng by 2.95% and Australia's S&P/ASX 200 by 2.55%.
