Oil prices fell sharply and stock markets rallied across Asia on Wednesday after the United States and Iran agreed to a two-week ceasefire, easing fears of a prolonged energy crisis that had pushed crude prices to multi-year highs and strained economies worldwide.
President Donald Trump announced the agreement on social media on Tuesday, hours after Pakistan urged him to back off a deadline he had set for Iran to reopen the Strait of Hormuz or face large-scale military strikes. The deal ends more than five weeks of active conflict between the US and Israel on one side and Iran on the other.
Under the ceasefire terms, the United States and Israel agreed to halt their military strikes on Iran for two weeks, while Iran confirmed it would allow shipping to resume through the Strait of Hormuz during that period.
Pakistan Prime Minister Shehbaz Sharif, whose government mediated the agreement, welcomed the deal and invited delegations from both sides to Islamabad on Friday, April 10, 2026, to continue negotiations toward a more permanent settlement.
Markets React Sharply
Financial markets responded with immediate relief. Oil prices plunged by more than 17 percent after the ceasefire announcement, while S&P 500 futures indicated the index could open more than 2 percent higher on Wednesday.
Asian equity markets extended those gains into Wednesday’s session. In Ghana, the National Petroleum Authority (NPA) had raised its mandatory minimum price floors for the April 1 to 15 pricing window, pushing petrol prices up approximately 15 percent and diesel by nearly 19 percent, following a surge in global crude driven by the Hormuz closure. A sustained drop in oil prices, if the ceasefire holds, would ease pressure on fuel costs that have risen sharply across Africa.
Cautious Optimism
Despite the relief rally, analysts warned that significant uncertainty remains. Negotiations are expected to begin in Islamabad on Friday, with Vice President JD Vance likely to lead the US delegation.
Iran’s 10-point ceasefire proposal includes demands for the withdrawal of US combat forces from the region, the lifting of sanctions, and the release of frozen Iranian assets, positions that remain far from what Washington has publicly offered.
US Vice President Vance described the arrangement as a fragile truce and urged Iran to negotiate in good faith, warning that Trump was “not one to mess around” if Tehran failed to engage seriously.
The two weeks ahead will determine whether Tuesday’s agreement marks the beginning of a durable resolution to a conflict that has disrupted global energy markets and pushed oil prices to levels not seen in years, or simply a pause before hostilities resume.
