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Markets surged as United States President Donald Trump announced on Apr. 7 that he would suspend attacks on Iran for two weeks.
In a Truth Social post, just an hour and a half before the 8 PM ET deadline, Trump said,
"Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double sided CEASEFIRE!"
He added that the reason for doing this is that all military expectations have been met and that he believes the 10-point proposal from Iran is a "workable basis on which to negotiate."
Trump also said that the two weeks will be used to negotiate and finalize the terms.
Iran's Minister of Foreign Affairs Seyed Abbas Araghchi welcomed the announcement and added that if attacks against Iran are halted, the armed forces would stop its "defensive operations."
"For a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran's Armed Forces and with due consideration of technical limitations."
Trump had given Tehran until 8 PM ET on April 7 to end its blockade of the Strait of Hormuz. The key water strip accounts for the passage of over 20% of the global oil supply. But since the beginning of the war, ships have been unable to pass through.
The result is an unprecedented surge in oil prices. In fact, before the announcement of the ceasefire, WTI crude oil was trading near $115 per barrel.
Trump had warned that if the Strait doesn't open up by the deadline, the U.S. will strike important infrastructures in Iran.
There was also an attempt in the United Nations to open the Strait with a proposal. But it was ultimately vetoed by Russia and China.
However, the situation reached a critical point when Trump posted on Truth Social on the morning of April 7 that “a whole civilization will die tonight” if Iran didn't agree to open the Strait.
The post sent shockwaves across the globe and markets.
Related: Cathie Wood warns oil could plunge 50% amid Hormuz crisis
Thankfully, the fears of escalation have abated. At least for now.
The news of the ceasefire came as a relief for both traditional and crypto markets.
Bitcoin jumped 2.2% higher in the past hour to $71,416.05, while Ethereum (ETH) posted a 1.8% increase to trade at $2,181.04.
Meanwhile, XRP was up by 2% in the past hour and was changing hands at $1.36.
Solana (SOL) also climbed up by 1.8% and began trading at $84.51.
After-hours market activity also improved accordingly for crypto stocks.
Bitcoin holding corporate giant Strategy (Nasdaq: MSTR) jumped 6.01%. Coinbase (Nasdaq: COIN) was up 4.86% while Robinhood (Nasdaq: HOOD) increased by 6.52%.
In the stock market, Dow Jones futures surged by 967 points, or 2.1%. S&P 500 futures added 2.1%, and Nasdaq 100 futures climbed 2.3%.
