Futures surge, oil tumbles after President Trump agrees to 2-week ceasefire
S&P 500 futures rose 2%, while WTI futures tumbled double digits.
US equity futures spiked and oil futures tanked after US President Trump said he agreed to a two-week ceasefire with Iran as the two sides work to find a lasting end to the conflict.
S&P 500 futures rose as much as 2%, while front-month West Texas Intermediate futures tumbled double digits, as of 7:05 p.m. ET.
In a Truth Social post, the president said the double-sided ceasefire was contingent on Iran “agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.”
Iran’s minister of foreign affairs acknowledged the agreement in a post on X, writing, “For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces and with due consideration of technical limitations.”
Trump added that Iran’s 10-point blueprint for a peace plan, which includes an end to the blockade of the strait, “is a workable basis on which to negotiate.” His message came roughly 90 minutes ahead of the 8 p.m. deadline the president had set to reach a deal with the Gulf nation, after which time he pledged to escalate attacks on Iran by hitting bridges and civilian power plants.
That 8 p.m. cutoff was itself the result of delays to previous deadlines set by the president.
The S&P 500 erased losses late in the regular trading day on Tuesday after Pakistan’s prime minister requested that Trump hold off on additional attacks for two weeks “to allow diplomacy to run its course” and for Iran to open the Strait of Hormuz for the same period as a “goodwill gesture.”
