Global Markets Rally Sharply as US and Iran Announce Two-Week Ceasefire, Oil Prices Tumble

Global stock markets surged Wednesday, April 8, 2026, following an announcement by U.S. President Donald Trump of a two-week ceasefire with Iran, aimed at reopening the Strait of Hormuz, a critical chokepoint for about one-fifth of the world's oil supply. According to Brecca Stoll's report in the Daily Wire, U.S. stock futures climbed sharply: Dow Jones Industrial Average futures rose about 3%, S&P 500 futures increased by about 3%, and Nasdaq 100 futures gained 3.5%. West Texas Intermediate crude fell about 17.5% to roughly $94 a barrel, while Brent crude dropped 15.5% to about $92 a barrel, as cited in the same Daily Wire article.

The U.S.-Iran conflict began on February 28, 2026, with U.S. and Israeli strikes targeting Iranian missiles and naval assets, according to reports from the Associated Press, Politico, and BBC referenced in bias analyses of coverage. This escalation followed Iranian actions in the Gulf, leading to threats to close the Strait of Hormuz and pushing crude oil prices up more than 70% year-to-date, with U.S. gas prices exceeding $4 a gallon for the first time since 2022, per the Daily Wire. Trump's announcement came less than two hours before a Tuesday, April 7, 8 p.m. ET deadline he had set, as noted by Johann M. Cherian and Purvi Agarwal in Newsmax.

Iran's foreign ministry stated Tuesday night that "for a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces and with due consideration of technical limitations," according to both the Daily Wire and UPI reports by Kang Yoon-seung of Yonhap News Agency. Trump described the ceasefire as contingent on Iran reopening the strait and said the U.S. "will be helping with the traffic buildup" with "lots of positive action," per Stoll's Daily Wire piece. However, marine vessel trackers indicated traffic had not fully resumed through the strait as of Wednesday, as reported in the Daily Wire.

Asian markets led the rally, with South Korea's KOSPI index adding 377.56 points, or 6.87%, to 5,872.34 on heavy volume of 926 million shares worth 35.6 trillion won ($24.1 billion), according to UPI/Yonhap. Foreign investors bought a net 2.43 trillion won, while institutions added 2.71 trillion won, the report said. Samsung Electronics surged 7.12% to 210,500 won, SK hynix soared 12.77% to 1,033,000 won, and automakers Hyundai Motor and Kia rose 7.4% and 5.57%, respectively; builders like Daewoo Engineering gained 29.97%, per UPI. Oil refiners such as SK Innovation fell 1.15%, and defense stocks like Hanwha Aerospace dropped 3.45%.

The Korean won strengthened 33.6 won to 1,470.6 against the dollar, and bond yields declined, with three-year Treasurys down 13.6 basis points to 3.315%, as detailed in UPI. Lee Kyoung-min, a researcher at Daishin Securities, attributed the turnaround to relief from geopolitical risks and falling crude prices below $100 per barrel, while Seo Sang-young of Mirae Asset Securities noted lingering uncertainties as Israel had not publicly responded on halting attacks, per UPI. Bias analyses flag that Samsung's preliminary Q1 earnings—operating profit up 755% year-over-year to 57.2 trillion won—also boosted the tech-heavy index, as reported by the Korea Herald.

In the U.S., Wall Street opened higher, with the Dow up 393.7 points or 0.85% to 46,978.17, S&P 500 up 137.5 points or 2.08% to 6,754.36, and Nasdaq Composite up 803.4 points or 3.65% to 22,821.209 at the bell, according to Newsmax. Equity indexes in Asia and Europe climbed 4% to 5%, crude slid 16% to nearly $90 a barrel (figure unverified across sources), and the dollar weakened 1% against the yen, the report stated. Russell 2000 futures jumped 3.72%, and the VIX fell 5.53 points to 20.94.

Energy stocks tumbled in premarket, with Exxon Mobil down 6.2%, Chevron 5.4%, and Occidental Petroleum 7.8% (unverified specifics per Newsmax), while travel shares rose: American Airlines +7.3%, Delta +6.8%, Carnival +9.4%, Norwegian Cruise Line +8.1%. Banks like JPMorgan, Bank of America, and Wells Fargo gained over 2% pre-bell. Josh Gilbert, eToro market analyst, cautioned in Newsmax that "the rally will need to be backed up by tangible progress... If the two weeks pass without a deal, expect a sharp and unforgiving reversal."

Trump also announced a 50% tariff on goods from countries supplying military weapons to Iran with no exemptions, as reported by the Daily Wire. Unverified quotes include Secretary of War Pete Hegseth stating "We know Iran says a lot of things" and "Commerce will flow through the strait" at a Wednesday briefing; Vice President JD Vance calling the ceasefire "fragile"; Pakistan Prime Minister Shehbaz Sharif requesting a two-week deadline extension; and Trump warning that without agreement, "a whole civilization will die," all per Daily Wire without external confirmation.

Post-announcement developments included continued attacks in Iran and Gulf states, and Russia and China vetoing a UN resolution to reopen the strait, as noted in AP live updates from April 7 and bias analyses. Israel endorsed the Iran-specific truce but excluded broader fronts like Lebanon/Hezbollah, per referenced Netanyahu statements omitted in coverage. Trump referenced a 10-point proposal from Iran as a "workable basis," per UPI. In March, the S&P 500 had its biggest monthly fall in a year amid escalating tensions, and short-term Treasury yields slipped Wednesday, with markets pricing a 56% chance of a Fed rate cut by end-2026, per Newsmax citing LSEG data.

The ceasefire followed weeks of conflicting signals dragging the conflict into its second month, providing immediate investor relief but with broader resolution uncertain, as Gilbert noted. Fed speakers Mary Daly and Christopher Waller were scheduled to comment later Wednesday, alongside March 17-18 FOMC minutes. While markets anticipated stabilization in energy supplies boosting the economic outlook, analysts flagged risks from implementation hurdles and potential escalations.