Middle East Ceasefire and Hormuz Reopening Lift Global Markets

US equity markets closed the week on a positive note as geopolitical risks receded following a breakthrough diplomatic agreement. The United States, Iran, and Israel have committed to a two-week ceasefire to allow for formal negotiations between the parties. The agreement is particularly significant due to its immediate impact on global energy logistics. As part of the deal, Iran has agreed to reopen the Strait of Hormuz for the duration of the ceasefire. Transit through this critical waterway will be coordinated with the Iranian Armed Forces to ensure stability during the negotiation window. The Strait of Hormuz remains one of the world's most vital maritime chokepoints. Any disruption to the flow of oil through this region typically leads to immediate spikes in crude prices and heightened volatility across global shipping and insurance markets. The reduction in immediate conflict risk provided a strong tailwind for US stock indexes, which ended the trading week higher. Market participants are now focusing on whether this temporary pause will lead to a sustainable diplomatic resolution or if volatility will return once the two-week window expires.