Market reaction was swift, with US crude falling about 16% to US$94.59 a barrel and Brent down 15% to US$92.35.
(EPA Images pic) SINGAPORE: Oil prices dived, stocks surged and the dollar was knocked back on Wednesday as a two-week Middle East ceasefire sparked a relief rally, fuelled by hopes that oil and gas flows through the Strait of Hormuz could resume.
The news capped weeks of financial market volatility and geopolitical upheaval after US and Israeli strikes on Iran late February pushed tensions to the brink, with Tehran effectively choking off the strategic waterway that carries about 20% of the world’s oil and gas.
US president Donald Trump on Tuesday agreed to a ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the strait or face devastating attacks on its civilian infrastructure.
Market reaction was swift and dramatic, with US crude futures down around 16% to US$94.59 a barrel, while Brent futures also slid 15% to US$92.35 per barrel.
S&P 500 futures leapt over 2%, while European futures jumped over 4%.
The US dollar fell broadly, having been the haven of choice during the tumult.
In Asia, Japan's Nikkei surged about 5% while South Korea's Kospi .KS11 rose 6%, triggering a halt in trading.
That left the MSCI's broadest index of Asia-Pacific shares outside Japan up 4%.
Beyond the immediate relief, investors remain keen to see whether the ceasefire leads to a broader resolution before placing....
