US-Iran Ceasefire Reopens Strait of Hormuz
Analysis based on 34 articles · First reported Apr 08, 2026 · Last updated Apr 08, 2026
The ceasefire agreement between the United States and Iran, leading to the temporary reopening of the Strait of Hormuz, caused a significant plunge in crude oil prices (West Texas Intermediate and Brent Crude) and a rally in global stock markets (Nikkei 225, KOSPI, S&P 500, Dow Jones Industrial Average). This de-escalation eased fears of long-term oil supply disruptions and inflation, leading to a weakening of the US dollar and strengthening of other currencies (Japan — Japanese yen, euro, United Kingdom — Pound sterling), as well as a rise in Gold and Bitcoin.
The United States and Iran agreed to a two-week ceasefire, leading to a temporary reopening of the vital Strait of Hormuz. This agreement followed escalating tensions and threats from Donald Trump to attack Iran's civilian infrastructure if the waterway remained closed. Pakistan, through Prime Minister Shehbaz Sharif, played a key mediating role in securing the ceasefire. While Iran claimed victory and agreed to safe passage in the Strait, Israel supported the bombing suspension but maintained the ceasefire did not include Lebanon. The news caused a significant drop in crude oil prices, with West Texas Intermediate and Brent Crude falling sharply, and a rally in global stock markets, including those in South Korea, Japan, and Hong Kong. The US dollar weakened, while the Japan — Japanese yen, euro, and United Kingdom — Pound sterling strengthened. Gold and Bitcoin also saw gains. International bodies like the United Nations and countries such as Iraq, South Korea, Japan, Australia, and New Zealand welcomed the de-escalation, though some, like Australia, criticized Trump's rhetoric and others, like New Zealand, cautioned that significant work remains for lasting peace.
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