US Stock Futures Surge as Trump Announces Iran Ceasefire; Oil Prices Plummet, Gold Soars

US stock futures surged on Wednesday while oil prices slipped after US President Donald Trump declared a two-week 'double-sided ceasefire' with Iran, triggering a wave of relief among global investors.

S&P 500 futures gained 2.5%, while the Nasdaq 100 and Dow Jones Industrial Average futures soared 3.3% and 2.4%, respectively. Crude oil futures cratered 15.9% to $94.98 per barrel while gold prices surged 3% to $4,827.4 per ounce.

Breenjoey strategist Andrew Lilley warned that the ceasefire may not ease inflation pressures immediately. 'It's kind of the scenario that results in permanently high yields because we're going to have damaged infrastructure and a sticky high oil price for months to come, which means that we are going to get higher inflation,' Lilley said.

Trump Announces Iran Ceasefire

In a Truth Social post, Trump announced the ceasefire, subject to Iran agreeing to the 'complete, immediate, and safe opening of the Strait of Hormuz.' He also suspended attacks on Iran during this period, citing that the US forces have already exceeded all military objectives.

Trump highlighted receiving a 10-point proposal from Iran, which according to him is a 'workable basis on which to negotiate,' adding that the two-week period will allow the agreement to be finalised and consummated.

Safe Passage Through the Strait of Hormuz

Iran's minister of foreign affairs Abbas Araghchi has confirmed the ceasefire on X shortly after Trump's post. Araghchi said Iran's forces will cease their 'defensive operations' if attacks against the country are stopped. He highlighted safe passage through the Strait of Hormuz through coordination with Iran's army during these two weeks. It's worth noting that over 20 million barrels of oil per day traversed the Strait of Hormuz in 2025, which constitutes roughly 25% of global seaborne oil trade.

'We congratulate all the people of Iran on this victory and emphasise that until the details of this victory are finalised, there is still a need for perseverance and prudence on the part of the authorities and for maintaining the unity and solidarity of the Iranian people,' Iran's Supreme National Security Council said in a statement.

Meanwhile, K2 Asset Management's George Boubouras believes that restocking energy supplies will be the main focus over the next week, as the conflict could 'reignite' rapidly.

'This decreases the probability of a recession particularly if more oil, gas, fertiliser can flow in the next week or so. Markets are always pragmatic and not complacent as they are looking through the conflict and valuations remain compelling on a one-year view,' he explained.

On the gold price surge, Pepperstone strategist Ahmad Assiri said that the rally reflects a recalibration of risk unsteady of a full regime shift. 'The move higher suggests markets are now pricing in a lower probability of prolonged disruption, while still retaining a meaningful discount versus the pre-Iran setup,' he noted.

'In the near term, gold remains highly sensitive to political developments. The current ceasefire provides a window of relief, but it is conditional and fragile. Any sign of breakdown, particularly around the Strait of Hormuz, would likely reintroduce volatility' he added.

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