Trump announces ceasefire between Israel and Iran, oil prices fall

• Ceasefire reduces geopolitical risk in the Middle East
• S&P 500 futures rise after Trump announcement
• Oil prices fall on expectations of stability

Former US President Donald Trump said on Monday that Israel and Iran have agreed to a “complete and total” ceasefire, effective immediately. The announcement was made via the social media platform Truth Social, with Trump stressing that the agreement aims to end the confrontation between the two countries.

“Assuming all works out as it should, which it will, I would like to congratulate both countries, Israel and Iran, for having the resilience, courage and intelligence to end what should be called ‘THE 12 DAY WAR,'” Trump wrote.

The news had an immediate impact on global markets. U.S. crude oil futures fell significantly following the announcement. The price decline reflects expectations of a reduction in tensions in the Middle East, a region that accounts for a significant portion of global oil supply.

On the other hand, S&P 500 e-mini futures saw a surge in trading after the market close on Wall Street. Investors reacted positively to the possibility of lower geopolitical risk, which could favor risk assets such as stocks and cryptocurrencies.

Robert Pavlik, senior portfolio manager at Dakota Wealth, assessed that the agreement represents a significant development for the markets. According to him, an Iran with limited nuclear capabilities and the distancing from a direct conflict with Israel are points that should ease investors' concerns. Pavlik also highlighted that the expectation is for a positive reaction in the stock markets in the coming sessions.

Art Hogan, chief market strategist at B. Riley Wealth, also echoed the optimism. “If that does happen, I would certainly say it’s a positive for the market, and futures are trending in that direction.”

Jack Ablin, chief investment officer at Cresset Wealth Advisors, noted that while equity investors have largely shrugged off the recent tension, the ceasefire is seen as a positive development.

Jake Dollarhide, CEO of Longbow Asset Management, added that the truce could help reduce both oil prices and geopolitical risk, creating room for the markets to continue recovering.

At the time of publication, the price of Bitcoin was quoted at $105.310 with an increase of 05 in the last 24 hours.