U.S.-Iran ceasefire lifts global assets as oil falls below $100

Iran's foreign minister said Tehran would stop its "defensive operations" and safe passage through the Strait of Hormuz was "possible" for the next two weeks, and oil prices fell below $100 per barrel, prompting a relief rally and lower U.S. Treasury yields.

Iran's foreign minister announced that Tehran will stop its "defensive operations" and said safe passage for ships through the Strait of Hormuz was "possible" for the next two weeks, reportedly in coordination with the country's armed forces. Financial markets reacted with a broad relief rally as oil prices fell sharply below $100 a barrel. Investors also moved into U.S. Treasurys and other defensive assets even as equities advanced. Strategists described the market move as a positioning reset rather than a clear shift back to sustained risk-taking. Key developments: - Iranian Foreign Minister Abbas Araghchi said Tehran would stop its "defensive operations" and that safe passage through the Strait of Hormuz was "possible" for the next two weeks. - Oil prices plunged below $100 per barrel, with West Texas Intermediate reported down to about $96.98 and Brent near $96. - U.S. Treasury yields fell, with 10-year and 2-year yields reported down 9 basis points to about 4.253% and 4.839%, respectively, and 30-year yields down about 7 basis points to 4.851%. - Investors continued to allocate to bonds and gold while equities rallied, reflecting ongoing hedging amid remaining uncertainty. - An investment strategist said the move looked like a relief-driven positioning reset layered on a fragile macro backdrop. Summary: Global assets rallied after the reported pause in Iranian defensive operations and the sharp drop in oil, which eased immediate inflation concerns linked to higher energy prices. At the same time, continued inflows to bonds and gold and strategist comments indicate that hedging remains common and broader macro risks persist. Undetermined at this time.