Market Reacts to Announced Ceasefire Between Israel and Iran Amidst Lingering Concerns

US stock futures surged after President Trump declared a ceasefire between Israel and Iran, a move that momentarily eased investor apprehension following recent regional hostilities. Trump announced the ""Complete and Total CEASEFIRE"" on Truth Social, set to begin around midnight ET, and lauded both nations for ending ""THE 12 DAY WAR."" He had previously acknowledged Iran's forewarning of its ""very weak"" missile strike on a US base in Qatar.

However, the optimistic market sentiment faced immediate challenges as Israel accused Iran of breaching the truce, citing renewed missile launches and vowing forceful retaliation. Iran has yet to confirm the ceasefire publicly. This development followed a series of intense exchanges, including Iran's missile attacks on Israel and the US targeting Iranian nuclear facilities.

Oil prices subsequently declined as the non-lethal nature of the Qatar strikes suggested an intent to de-escalate. Brent crude fell by more than 3% following a previous drop exceeding 7%, reverting to pre-conflict levels. Market analysts generally interpreted the ceasefire as a positive sign, though some lingering concerns about uranium stockpiles remain. The reduction in oil price risk was seen as beneficial for global growth prospects and potentially supportive of procyclical currencies.

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