Oil prices fell sharply and stock markets surged after a conditional ceasefire between the United States and Iran eased immediate fears of a prolonged energy shock through the Strait of Hormuz. The Wall Street Journal reported that Brent crude dropped more than 16% while U.S. equities rallied as traders moved quickly to price in a lower immediate risk of supply disruption.

The relief was broad but not complete. The Guardian reported that markets welcomed the truce, yet shipping uncertainty, damaged infrastructure and doubts about full access through Hormuz continued to weigh on the outlook even after the initial rally.

Analysts said the rebound in equities reflected a reduction in worst-case energy fears rather than a full return to stability. In its market note for the week, Brown Brothers Harriman said the balance of risks still pointed toward a prolonged energy shock if tensions flared again, keeping pressure on inflation expectations and financial conditions.

That leaves markets in a familiar position: relieved in the short term, but still highly exposed to geopolitical swings. Prices moved as if the immediate emergency had eased, but investors are still watching the shipping corridor, insurance costs and the durability of the ceasefire.