Wall Street stocks rallied and oil prices fell Tuesday morning after President Donald Trump announced a ceasefire in the Israel-Iran war, according to the Associated Press. The tentative truce faces uncertainty as Iran reportedly launched missiles into Israel’s airspace less than three hours after the ceasefire went into effect, and the latter promised retaliation.
Still, investors were buoyed by Trump’s announcement that the two nations had agreed to a “complete and total ceasefire.” Futures for the S&P 500 rose 0.8%, and Dow Jones Industrial Average futures ticked up 0.7%.
Oil prices dropped further after falling on Monday as fears of an Iranian blockade of the Strait of Hormuz dissipated. The strait is a vital waterway for shipping crude. Oil prices have now given back nearly all of their gains since Israel attacked Iran on June 13. On Tuesday, U.S. benchmark crude gave up 3% to $66.49 per barrel. Brent crude, the international standard, shed 3% to $69.38.
