Quick overview

---

Crude oil fell the most in nearly six years following the US and Iran’s agreement to a two-week ceasefire, which gave markets a break from the volatility caused by the Middle East conflict.

West Texas Intermediate fell as much as 19% after President Donald Trump decided to halt bombing Iran in an effort to help restore oil flows through the Strait of Hormuz.

Iran stated that during that time, it would be safe to travel through the waterway.

Brent crude, a global benchmark, fell 13% to $94.50 per barrel. The Asia Pacific equity index of the MSCI surged 5% to its highest level in five weeks as traders wagered that lower oil prices would help curb inflation and spur economic expansion. Wall Street gauge stock index futures increased by over 2.5 percent, while European contracts saw a 5.3 percent increase.

Three Fed officials voiced concerns about inflation and slowing growth on Tuesday, before the ceasefire announcement.

Vice Chair Philip Jefferson stated that interest rates are generally in a range that neither stimulates nor inhibits the economy. In contrast, Fed Bank of New York Governor John Williams stated that his predictions regarding underlying price pressures in the US remained mostly unchanged.

According to Assiri, “gold remains highly sensitive to political developments in the near term.” “The current ceasefire offers a brief period of respite, but it is brittle and contingent. He continued, “Any indication of breakdown, especially near the Strait of Hormuz, would probably reintroduce volatility and downside risk.”