Finance
Oil Dives, Stocks Surge as Trump Agrees Two-Week Ceasefire
Published by Global Banking & Finance Review®
Posted on April 7, 2026
2 min readLast updated: April 7, 2026
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Markets rallied on April 8 as a two‑week ceasefire agreed by President Trump calmed fears of Middle East disruption. Oil fell ~9%, while stock futures, bond futures, and risk assets surged.
Oil dives, stocks surge as Trump agrees to two-week ceasefire
Market Reactions to Middle East Ceasefire
Immediate Impact on Financial Markets
SINGAPORE, April 8 (Reuters) - Oil prices dived, bonds rallied and stocks surged on Wednesday after a two-week ceasefire in the Middle East spurred a relief rally as investors cheered the possible resumption of oil and gas flowing through the Strait of Hormuz.
U.S. President Donald Trump said he agreed to suspend bombing and attacks on Iran for two weeks and that a long-term peace agreement was in progress.
Background: Tensions and the Strait of Hormuz
Global markets have been rattled since the U.S. and Israel attacked Iran at the end of February, leading Tehran to effectively close the Strait of Hormuz, a key waterway used to transit one-fifth of the world's oil and gas.
Price Movements and Investor Sentiment
U.S. crude futures fell around 16.5% to $94 a barrel, S&P 500 futures leapt over 2% and the dollar fell broadly, having been the haven of choice for investors during the tumult.
"Markets have been predicting that Trump was looking for an off-ramp in Iran," said Jamie Cox, managing partner at Harris Financial Group. "Today, he got one and took it."
Global and Regional Market Responses
Futures pointed to broad gains for Asia's stock markets, which have been beaten down by war and soaring energy prices, and 10-year U.S. Treasury futures jumped about 15 ticks.
The risk-sensitive Australian dollar rose 1.3% to above $0.7070 and the euro gained 0.76% to $1.1683. Cryptocurrencies also rose.
Ceasefire Negotiations and Geopolitical Risks
Trump's Deadline and Iranian Response
Trump had set a late Tuesday deadline for a deal with Iran to be reached, threatening to destroy every bridge and power plant in the country if Iran did not reopen the Strait of Hormuz. Iran had said it would retaliate against U.S. allies in the Gulf.
Broader Economic Implications
The six-week conflict has sent oil prices surging, stoked worries of inflation and upended the global rates outlook with countries and companies scrambling to adjust to the energy shock.
Commodities Market Reaction
In commodities, gold prices rose over 2% to $4,812 per ounce. [GOL/]
(Reporting by Tom Westbrook and Ankur Banerjee; Editing by Jamie Freed and Chris Reese)
Key Takeaways
- •Oil prices plunged nearly 9% to about $103/barrel amid easing geopolitical risk and hopes of restored Gulf exports (apnews.com).
- •Stock and bond futures rallied strongly—S&P 500 futures up ~1.6%, 10‑year U.S. Treasury futures up ~15 ticks—reflecting renewed investor optimism (apnews.com).
- •Currencies such as the Australian dollar and euro strengthened, and cryptocurrencies rose, underscoring broad risk‑on sentiment (apnews.com).
References
Frequently Asked Questions about Oil dives, stocks surge as Trump agrees two-week ceasefire
1Why did oil prices drop on April 8?
Oil prices dropped by around 9% after President Trump agreed to a two-week ceasefire in the Middle East, easing concerns over supply disruptions.
2How did stock markets react to the Middle East ceasefire?
Stock markets surged globally, with S&P 500 futures rising 1.6% and Asia's markets expected to gain as peace talks progressed.
3What was the impact on the US dollar following the ceasefire announcement?
The US dollar fell broadly against other currencies after news of the ceasefire, with the Australian dollar and euro both rising.
4What effect did the ceasefire have on US Treasury futures?
US 10-year Treasury futures jumped about 15 ticks amid increased investor confidence following the Middle East ceasefire.
5Did cryptocurrencies respond to the ceasefire news?
Yes, cryptocurrencies also saw a rise following the announcement of the ceasefire and optimism in financial markets.
