New Delhi, June 24, 2025 — World stock markets rallied sharply on Tuesday after U.S. President Donald Trump announced what he described as a “tentative ceasefire” between Israel and Iran, a move that brought temporary relief to investors after weeks of heightened geopolitical tensions.
The announcement, though met with cautious optimism due to its uncertain durability, had an immediate and strong impact across global financial markets. Major indices in Asia, Europe, and the U.S. posted notable gains, with energy prices also falling significantly.
Crude oil prices, which had been volatile amid fears of disruption in the Gulf region, dropped sharply. Brent crude fell by nearly 4%, its steepest single-day decline in weeks, settling at around $68.81 per barrel, while U.S. crude closed at $65.91. The decline was seen as a result of easing concerns over the security of oil shipments through the Strait of Hormuz a crucial chokepoint for global energy trade.
In Asia, Japan’s Nikkei jumped 1.1%, while the MSCI Asia-Pacific index excluding Japan climbed 2.2%. European markets followed with similar enthusiasm, as the STOXX 600 index rose by 1.3%, driven by strong performances in travel, leisure, and financial stocks. In the U.S., S&P 500 futures and Nasdaq futures rose by 0.8% and 1% respectively, pointing toward a strong market opening.
Back in India, the domestic stock market joined the global uptrend. Key benchmark indices rose more than 1%, while volatility indices fell over 4%, reflecting improved investor sentiment and reduced geopolitical anxiety.
The announcement came amidst reports of missile exchanges between Israel and Iran continuing even after the ceasefire declaration, raising doubts about its effectiveness. Nonetheless, investors welcomed any sign of de-escalation. Analysts noted that falling oil prices could help curb inflationary pressures, ease costs for energy-importing nations, and provide central banks with room to maintain or cut interest rates if needed.
Financial experts, however, remain cautious, noting that the ceasefire, while market-friendly in the short term, is far from a comprehensive resolution to the broader conflict in the Middle East.
As the situation develops, markets will likely remain sensitive to any changes in the security or diplomatic landscape.
