US-Iran Ceasefire Triggers Global Rally as Oil Prices Plunge

Global markets are reacting positively to a surprise two-week ceasefire agreement between the U.S. and Iran, designed to secure the critical energy corridor in the Gulf. The deal has significantly reduced the risk of an immediate supply shock, leading to a sharp sell-off in energy commodities and a surge in risk appetite across global equity indices. U.S. President Donald Trump indicated that a 10-point proposal received from Iran provides a workable foundation for further negotiations. As part of the truce, the U.S. has paused planned strikes on Iranian bridges and power plants, while the agreement also calls for a cessation of hostilities between Israel and Hezbollah in Lebanon. The impact on commodities was immediate and severe. West Texas Intermediate (WTI) crude futures plummeted by $19.59, or 17.3%, falling to $93.36 per barrel. Conversely, precious metals saw gains, with gold futures rising 3.01% to $4,826.30 an ounce and silver climbing 7.78% to $77.585 an ounce. Equity markets in Asia and Europe have already surged, and Canadian stocks are expected to open with a strong positive gap. The S&P/TSX Composite Index, which closed Tuesday at 33,237.52, is poised for gains as investors pivot away from inflation fears and toward a more stable global growth outlook. While the truce allows shipping to resume in the Strait of Hormuz, transit fees may still be levied by Iran and Oman.