Global oil prices plunge and ASX enjoys sharp surge after Trump abandons Iranian threat

Both countries have agreed to a two-week ceasefire to allow ships to pass through the Strait of Hormuz, brokered by Pakistan.

Following the announcement, the ASX rose 2.7 per cent to 8960.70 at 2.05pm AEST.

Eight of the eleven sectors are also trading higher in the green, while energy and utilities are still in negative territory.

Brent crude oil (the global benchmark for oil prices) fell 13.3 percent to $94.73 per barrel – the highest level in six years.

US crude futures fell 14.3 percent to $96.83 per barrel, while Brent crude fell 13.3 percent to $94.74.

Although both prices are still above where they were at the start of the war, it is a welcome sign for motorists who have received significant price increases at the bow.

Asian markets also rose, with Japan’s Nikkei up 4.5 percent and South Korea’s Kospi up 6.1 percent.

It comes after a shaky start earlier this morning, when oil prices rose and US stocks fell ahead of Trump’s deadline to end Iranian civilization and bomb their power plants and bridges today.

The US president changed his mind a few hours ago after talks with Pakistan.

“Based on discussions with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir of Pakistan, and in which they requested that I hold back the destructive force being sent to Iran this evening, and provided that the Islamic Republic of Iran agrees to the FULL, IMMEDIATE and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attacks on Iran for a period of two weeks,” he said in a statement Truth Social post.

“This will be a double-sided ceasefire!” 

Iran’s Supreme National Security Council accepted the proposal and said it would start negotiations with the US and allow ships to pass through the Strait of Hormuz.

“It is emphasized that this does not mean the end of the war,” Iran’s Supreme National Security Council said in a statement.

“Our hands remain on the trigger, and should the slightest mistake be made by the enemy, it will be met with full force.”

– With associated press

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