A Breath of Relief on Global Financial Markets
A sense of relief is sweeping across global financial markets. The announcement of a two-week ceasefire between Washington and Tehran, accompanied by the reopening of the Strait of Hormuz, has been enough to boost markets that had been waiting for a diplomatic breakthrough for weeks. Both US President Donald Trump and Iranian Foreign Minister confirmed the truce, and investors didn't wait any longer to react.
Asian Markets Celebrate
In Asia, Wednesday's trading session turned into a veritable stock market party. Tokyo jumped by over 5%, while Seoul surged by nearly 7% - a level not seen in a long time for the Kospi. Hong Kong, Sydney, and Taipei all saw their indices close sharply higher. This euphoria is understandable, given the significant impact that the closure of the Strait had on economic expectations across the region.
European Markets Set to Follow
On the European side, the mood is expected to be just as festive at the opening bell. Frankfurt could gain up to 5%, Paris may exceed 1.5%, and London is likely to follow the trend. Futures contracts leave little room for doubt: the rebound is real and underway.
Oil Prices Retreat
The question of oil prices remains. After approaching $110 per barrel - a level that was starting to cause serious concern - Brent crude has fallen back to around $93, representing a drop of approximately 15%. WTI crude is following a similar trajectory, hovering around $95. European gas, meanwhile, has retreated by 20%, falling back below thresholds that had recently caused concern in European capitals.
A Fragile Calm
So, for now, there is a sense of calm. Fragile, perhaps, but for the time being, markets are breathing a sigh of relief.
