Global oil prices have tumbled and stock market indices have surged following news that the United States and Iran have agreed to a conditional two-week ceasefire.

A key component of the truce includes the reopening of the strategic Strait of Hormuz.

In response to the ceasefire announcement this Wednesday, the price of Brent crude plummeted by approximately 15.9%, dropping to nearly $92 per barrel.

Despite the sharp decline, prices remain higher than pre-war levels.

Following the outbreak of hostilities, Iran’s near-total closure of the Strait of Hormuz sent global fuel prices skyrocketing, at one point reaching a peak of $119 per barrel.

The ceasefire news has also triggered a positive reaction across Asian stock markets, with indices in Japan and South Korea recording significant gains.

Analysts suggest that while the ceasefire provides temporary relief, energy production will not fully stabilize without a permanent peace agreement.

Asian nations, particularly those heavily dependent on fuel imports, have faced the most intense pressure during this crisis.