On Wednesday, US President Trump announced in the early hours that with the temporary ceasefire agreement reached between the US and Iran, the US would assist in resolving the severe shipping congestion issue in the Strait of Hormuz.
“This is an important day for world peace! Iran is eager for peace, they have had enough! Likewise, others have had enough!” Trump wrote on the social platform “Truth Social.”
“The US will assist in addressing the shipping congestion issue in the Strait of Hormuz. There will be many positive actions! Great wealth will follow. Iran can begin the rebuilding process,” Trump stated. “We will be delivering various supplies and ‘hanging around’ nearby to ensure everything goes smoothly.”
The Strait of Hormuz is a critical waterway that controls about one-fifth of global oil traffic. According to data from Kpler, about 200 oil tankers, totaling 130 million barrels of crude oil and 46 million barrels of refined oil, are currently trapped in the strait due to the conflict.
Following the ceasefire announcement, international oil prices saw a sharp decline. West Texas Intermediate (WTI) futures dropped over 14% to around $96.98 per barrel, while Brent crude fell over 12% to approximately $96 per barrel.
Various financial assets suppressed by the rise in energy prices also saw a strong rebound.
On Wednesday, the South Korean Kospi index surged over 5%, with the small-cap focused Kosdaq index rising 3.4%. The Japanese Nikkei 225 index rose 4%, and the Topix index was up 3.2%. Taiwan’s weighted index gained 4.61%. Australia’s S&P/ASX 200 index rose 2.7%. The Hang Seng Index in Hong Kong surged over 2%, and the CSI 300 Index rose by 2.15%.
Traditional safe-haven assets also climbed. Spot gold rose 2.2% to $4,803.83 per ounce, while gold futures rose more than 3% to $4,835.90. Investors also flocked to the US Treasury market, with the yield on the 10-year and 20-year bonds falling by 9 basis points to 4.253% and 4.839%, respectively. The 30-year bond yield dropped 7 basis points to 4.851%.
In his post, Trump also expressed high confidence in the economic reconstruction of the Middle East, stating, “Just as we have experienced in the US, this could be the beginning of a golden age for the Middle East.”
While the agreement brokered by Pakistan brings a glimmer of hope to regional tensions, Israeli Prime Minister Benjamin Netanyahu’s office made it clear that the ceasefire agreement between the US and Iran does not include Hezbollah’s conflict in Lebanon.
Israel’s statement emphasized that the support for the US ceasefire decision is contingent on Iran immediately opening the strait and ceasing all attacks against the US, Israel, and regional countries. However, Israel’s military actions against Hezbollah within Lebanon will continue.
White House spokesperson Karoline Leavitt described the agreement as a “victory for the US” and noted that it was the result of President Trump’s leadership along with the military’s efforts.
Leavitt posted on X platform, stating, “Since Operation Epic Fury began, President Trump estimated it to be a 4 to 6-week operation. Thanks to the incredible capabilities of the US military, we have achieved and surpassed core military objectives within 38 days.”
She mentioned that Defense Secretary Pete Hegseth would provide more information on Wednesday morning. General Dan Caine, Chairman of the Joint Chiefs of Staff, would also attend the briefing.
Pakistan’s Prime Minister Shehbaz Sharif, who served as the mediator in this process, welcomed the outcome and has officially invited representatives from both the US and Iran to attend a summit in Islamabad, Pakistan’s capital, before April 10.
Sharif expressed hope that the negotiations would lead to a final agreement resolving all disputes and achieving lasting peace.
Iran has also confirmed that talks with the US will begin this Friday.