Stocks rally 5% and yen strengthens 1% after U.S. and Iran agree to ceasefire
Why it matters: The ceasefire immediately caused **oil prices to plunge below $95** and **U.S. Treasury yields to fall sharply**.
- U.S. and Iran agreed to a ceasefire, leading to a 5% stock rally and 1% yen strengthening.
- The Strait of Hormuz will be open for safe passage of oil tankers, causing oil prices to plunge below $95 (CNBC).
- Iran is demanding fees for ships passing through Hormuz during the ceasefire (Financial Times).
- Axios reports that large-scale oil shipping won't quickly resume despite the ceasefire.
- U.S. Treasury yields fell sharply following the ceasefire agreement (CNBC).
- Over 85 Democratic lawmakers are still demanding Trump's removal, indicating the ceasefire hasn't quieted domestic political dissent (Axios).
Global markets reacted positively to a U.S.-Iran ceasefire agreement, with stocks rallying 5% and the yen strengthening 1%, as the Strait of Hormuz is set to reopen for oil tankers. However, the full picture is complicated by Iran's demand for passage fees and Axios's skepticism that large-scale oil shipping will resume quickly, while oil prices plunged below $95.
