Markets are cheering the two-week ceasefire struck by President Trump and leaders in Iran, with investors scrambling to buy up stocks after a six-week conflict marked by periodic Wall Street selloffs.
Dow Futures jumped more than 1,000 points early Wednesday, following rallies in the Asian and European markets.
The price of Brent crude oil, an international benchmark, dropped below $100 per barrel to around $93.
Lower oil prices will reduce gasoline prices for everyday Americans, though it may take a while, and it is unclear whether the trend will hold.
Mr. Trump agreed late Tuesday to hold off on his apocalyptic promise to order the death of “a whole civilization” on Tuesday after Iran agreed to open up the Strait of Hormuz as part of a Pakistan-brokered temporary ceasefire of the ongoing conflict between Washington and Tehran.
The U.S. president said a two-week suspension of what he said would be a sweeping bombing campaign targeting Iran’s bridges, power plants and utilities was based on conversations he had with Pakistani Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, the country’s military chief.
On Truth Social, Mr. Trump said the U.S. would be monitoring traffic through the Strait of Hormuz, a critical waterway for oil traffic.
“There will be lots of positive action! Big money will be made. Iran can start the reconstruction process,” Mr. Trump said. “We’ll be loading up with supplies of all kinds, and just ‘hangin’ around’ in order to make sure that everything goes well. I feel confident that it will.”
The U.S. and Israel launched joint strikes on Feb. 28 to dismantle Iran’s nuclear and missile capabilities and constrain its ability to fund terrorism in the region. Early strikes killed Iran’s supreme leader and other top officials.
Iran responded by striking Gulf nations’ energy facilities and choking off the Strait of Hormuz, causing a shock through oil markets.
Japanese Prime Minister Sanae Takaichi urged Pakistani leaders to ensure the safe passage of vessels through the strait because Japan imports much of its oil from the region.
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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