The announcement of a truce between Washington and Tehran sent global stock markets soaring on Wednesday, while oil prices plummeted.
The announcement of a two-week ceasefire between the United States and Iran sparked a wave of relief in financial markets. After several difficult trading sessions, investors returned en masse to risky assets, driving a sharp rise in indices.
Initially, in Paris, the CAC 40 surged +3.6% at the open, before posting a further +1.53% gain later in the morning, with some estimates even citing an initial peak of nearly +4.4%.
In Frankfurt, the DAX rose by 5.3%, while London followed suit with a sharp 2.3% gain in the FTSE 100. The pan-European STOXX 600 index also gained 3.6% at the open.
A historic bearish shock in oil
The main driver behind this rebound in European stock markets was the dramatic drop in energy prices. The reopening of the Strait of Hormuz and the announcement of a ceasefire sent oil prices plummeting. Brent crude thus lost nearly 15.4%, falling to around $91.7 per barrel, while U.S. WTI fell by about 15.2% to $88.5.
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