The Asian stock markets also strengthened significantly after the announcement of the two-week ceasefire, but investors are waiting to see if Iran will really release the blockade of the Strait of Hormuz.
Major indexes in Japan, South Korea and Hong Kong posted strong gains, while oil prices fell by more than 15%, although they remain above pre-war levels, the New York Times reports. US West Texas Intermediate crude is currently selling for around $96 per barrel
But analysts warn that the situation is still uncertain — it is not clear how fully the strait will be reopened, nor whether the planned negotiations between the US and Iran will lead to a permanent end to the conflict. About 20% of the world’s oil traffic usually passes through the strait.
Trump made the ceasefire conditional on the opening of the Strait of Hormuz, which, according to Iranian Foreign Minister Abbas Arakči, Tehran agreed to. According to AFP, Arakčí also said that passage through the Strait of Hormuz will be allowed in the next two weeks “on the basis of coordination with the Iranian armed forces and with due regard to technical restrictions.”
The American president announced that he is ready to negotiate a cease-fire less than two hours before the expiration of his ultimatum, by which time Tehran was supposed to conclude an agreement with the United States. On Tuesday, Trump threatened to destroy “an entire civilization” if Iran does not accede to the agreement.
The United States and Israel launched strikes against Iran on February 28, sparking a regional war. In retaliation, Tehran and its allies began using drones, ballistic missiles and rockets to attack not only Israel and American military facilities in the Middle East, but also civilian targets, including oil infrastructure in the surrounding Arab countries. As a result of Iran’s de facto blockade of the Strait of Hormuz, which is a key waterway for the export of oil and natural gas from the Persian Gulf, the prices of these commodities on world markets have risen considerably.
