US-Iran ceasefire extension triggers global oil slide and stock market surge

Global markets witnessed significant volatility followed by strong recovery after the ceasefire announcement between the United States and Iran, as oil prices declined sharply while stock markets recorded notable gains, 24NewsHD TV channel reported on Wednesday.

According to the report, the international benchmark Brent Crude fell by 15.9 percent to $92.30 per barrel, reflecting easing concerns over supply disruptions. Similarly, crude oil traded in the United States market dropped by 16.5 percent to $93.80 per barrel.

Equity markets across the Asia-Pacific region responded positively to the development. Japan’s Nikkei 225 surged by 4.5 per percent, while South Korea’s KOSPI rose by 5.5 percent, indicating renewed investor confidence.

The announcement of a ceasefire between Washington and Tehran led to a broader shift in global financial sentiment, with investors moving away from safe-haven assets amid expectations of stability in energy supplies.

Further easing in oil markets was observed after Donald Trump announced an extension of the ceasefire, pushing crude prices below the $100 per barrel mark in international trade.

In subsequent trading, West Texas Intermediate crude recorded a decline of up to 13 percent, settling at $97 per barrel. Meanwhile, Brent crude also dropped by around 12.5 percent to $95 per barrel, reinforcing the downward trend in energy prices.

Analysts believe the continued ceasefire and its extension have reduced geopolitical risks, leading to lower oil prices and a surge in stock markets, as global investors anticipate improved economic stability and uninterrupted supply chains.