Oil Falls, Stocks Rally as Trump Announces Truce

On June 23, 2025, global financial markets reacted swiftly after former U.S. President Donald Trump announced a ceasefire between Israel and Iran, signaling a potential pause in the recent 12-day conflict in the Middle East. Following the announcement, oil prices experienced a sharp decline—Brent crude dropped nearly 3%, and U.S. West Texas Intermediate crude fell by a similar margin. This drop reflected easing fears over disruptions in the critical Strait of Hormuz, a key oil transit route. At the same time, stock markets rallied as investors responded positively to the reduced geopolitical risks, which had previously fueled market uncertainty and volatility. The prospect of de-escalation brought optimism for global economic stability and energy supply security. However, skepticism remains as Iranian officials denied a formal ceasefire agreement, and missile attacks reportedly continued, keeping the regional situation tense. Still, the market's initial reaction showed hope that peace efforts might gain traction, easing pressure on commodities and equities alike.

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