- Wall Street and Asian markets rally after Trump announces a temporary ceasefire between Iran and Israel.
- Oil prices tumble sharply, while emerging-market currencies and Middle Eastern assets rebound.
- Fed Chair Jerome Powell’s testimony and Trump’s July 9 deadline remain in investor focus.
Markets across the globe opened higher on Tuesday following a tentative ceasefire announcement between Israel and Iran, reportedly brokered by U.S. President Donald Trump.
Meanwhile, Middle Eastern financial markets experienced a notable rebound. The Israeli shekel hit its strongest level since early 2023, and Egypt’s dollar bonds led gains in frontier markets.
Ceasefire Relief Rallies Stocks Globally as Oil and Gold Decline
Oil and gold markets reacted sharply to the de-escalation signals. Brent crude plunged more than 8% overnight and another 5% in early trading, falling below $68 per barrel. West Texas Intermediate (WTI) futures dropped over 5%, reversing gains made during the peak of the crisis. Meanwhile, gold futures declined by 1.6%, retreating to $3,340.75 per ounce as investor appetite for safe-haven assets waned.
Indonesia’s stock market also mirrored global sentiment, with the Jakarta Stock Exchange Composite Index closing 1.44% higher. Sectors like financials, infrastructure, and agriculture led the surge, with standout performances from stocks such as Jakarta Setiabudi Internasional and Suryamas Dutamakmur. The broader optimism outweighed steep losses in select equities like Capitalinc Investment, which fell 25%.
Currency markets experienced volatility as the U.S. dollar index fell 0.31%, providing a boost to several Asian currencies. The South Korean won, Philippine peso, and Egyptian pound all gained ground. In Indonesia, the rupiah strengthened, with the USD/IDR pair falling by 0.32%. Analysts noted that easing geopolitical risks and falling oil prices supported the region’s trade-dependent economies.
Looking ahead, market participants will closely monitor Jerome Powell’s Congressional testimony, expected to provide fresh insight into the Federal Reserve’s policy direction. Additionally, Trump’s looming July 9 policy deadline could bring new geopolitical and economic shifts. While the ceasefire has sparked near-term optimism, uncertainty remains around the durability of peace and broader implications for global trade and inflation.
With markets breathing a collective sigh of relief, investors are cautiously optimistic—but the global focus now shifts to monetary policy signals and the stability of the ceasefire.
“In the midst of chaos, there is also opportunity.” — Sun Tzu
