US and Iran Reach Two-Week Ceasefire, Signaling Potential Hormuz Reopening

US equity futures trended higher ahead of the Wednesday opening bell as news broke of a two-week ceasefire agreement between the United States and Iran. The diplomatic shift comes amid heightened tensions in the Middle East, providing a momentary reprieve for global markets. Central to the agreement is the potential reopening of the Strait of Hormuz, one of the world's most critical maritime chokepoints for energy transport. Any disruption or closure of the strait typically triggers immediate spikes in crude oil prices and increases volatility across global equity indices. The prospect of stabilized oil flows and reduced military friction has shifted investor sentiment toward a risk-on posture. Equity futures are reacting positively to the decreased likelihood of a broader regional conflict and the mitigation of supply-side shocks to the energy market. While the ceasefire is limited to a two-week window, traders are monitoring the situation for signs of a more permanent diplomatic resolution. The immediate focus remains on the operational status of the Strait of Hormuz and the adherence of both parties to the truce.