US stock futures climbed in pre-market trading after Donald Trump indicated a temporary easing of tensions in the US-Iran conflict, suggesting a two-week ceasefire. This announcement arrived just before his deadline for Iran to reopen the Strait of Hormuz, a vital corridor for global energy supplies.
At approximately 16:10 IST, futures tied to the Dow Jones Industrial Average surged by 1,193 points, or 2.5%. Futures for the S&P 500 and Nasdaq 100 also rose by 2.6% and 3.4%, reaching 6,831.2 and 25,201.75, respectively.
This increase followed Iran’s Supreme National Security Council agreeing to reopen the Strait for two weeks, contingent upon a pause in hostilities.
Following these developments, oil prices fell. West Texas Intermediate crude futures dropped over 15%, settling at $95.75 per barrel, while Brent crude fell more than 13% to $94.40, signaling a reduction in supply concerns.
Trump stated that the proposed ceasefire hinged on Iran maintaining operations in the Strait, with Israel also reportedly in support.
In the prior trading session on Tuesday, the S&P 500 and Nasdaq Composite saw modest increases of 0.08% and 0.10%, respectively, fueled by expectations of a potential ceasefire, while the Dow Jones decreased by 85.42 points.
In a separate development, Pakistan’s benchmark index experienced a notable intraday surge on April 8, gaining over 12,000 points as the country facilitated ceasefire discussions.
Prime Minister Shehbaz Sharif encouraged Trump to extend the deadline for potential military actions and asked Iran to reopen the Strait as a “goodwill gesture” in a message on X.
