US-Iran Ceasefire Tanks Oil 16%, Lifts Stocks

Global markets experienced a substantial rebound following the announcement, with Asian and European equities surging. The FTSE 100 climbed 2.6 percent to 10,620, and the FTSE 250 jumped 3.7 percent to 22,363.

The British pound also strengthened, rising 0.8 percent against the dollar to $1.34. Airlines, including Wizz Air and British Airways owner IAG, were major beneficiaries, seeing their shares increase by 15 percent and 10 percent respectively, due to the anticipated reopening of the Strait of Hormuz.

Conversely, oil giants BP and Shell experienced declines of 8 percent and 7 percent as crude prices weakened. Despite Trump's optimistic "Big day for World Peace!

" declaration on Truth Social, Iranian officials maintain control over the Strait of Hormuz and demand reparations, indicating a challenging path toward a permanent peace deal, as noted by New York Times correspondent David E Sanger. Kallum Pickering, chief economist at Peel Hunt, confirms the ceasefire reduces immediate recession risks but warns of "baked-in" economic damage, projecting higher inflation in the second half of the year and slower global growth.