Oil slumped and stocks gained as US President Donald Trump said Tuesday a ceasefire has been implemented between Israel and Iran, spurring optimism there will be a lasting pause in the conflict.
Brent crude slid almost 5% in early Asian trading, briefly dropping below the level of June 12, the day before Israel attacked Iran’s nuclear sites. European and US stock-index futures both jumped, while MSCI’s Asia Pacific share gauge headed for its biggest gain in more than two months. The dollar fell against all its major peers and gold, a haven asset, dropped 1.3%.
Trump’s statement was followed soon after by a confirmation from Israeli Prime Minister Benjamin Netanyahu that his country agreed to a truce. Iranian Foreign Minister Abbas Araghchi said in a post that his country would stop firing so long as Israel does.
The announcement follows a volatile period in which financial markets have been whipsawed for almost two weeks by concern the conflict would keep escalating.