U.S. stock index futures jumped and crude oil prices fell on Wednesday, April 08, 2026, as global markets rallied following the announcement of a two-week ceasefire between the United States and Iran. The temporary halt in hostilities, attributed to President Trump via social media, immediately translated into financial gains for capital, with oil dropping below $100 and main oil barrel indexes showing a 15% average fall, driven by expectations that Middle East energy supplies could resume.
White House press secretary Karoline Leavitt declared the two-week ceasefire a “victory for the United States,” asserting that President Trump and the military had achieved and exceeded “core military objectives” in 38 days of “Operation Epic Fury.” This military action, she stated, created “maximum leverage” for negotiations aimed at advancing “America’s interests.”
The ceasefire announcement came approximately 90 minutes before a deadline set by President Trump, who had threatened to destroy Iran’s power plants and other critical infrastructure if the Strait of Hormuz was not opened. Trump had previously stated he went from threatening Iran with “annihilation” to accepting a “workable” plan. The Associated Press reported that the ceasefire was expected to pave the way to end the nearly six-week-old war.
Capital's Gains and New Tolls
The agreement includes a provision for Iran and Oman to charge fees on ships transiting through the Strait of Hormuz, a waterway previously considered international and free of tolls. Iran is slated to use these funds for reconstruction, while Oman’s intended use for the money remains unclear. Senator Chris Murphy, D-Conn., characterized this development as effectively giving Tehran “control” of the strait, calling it “a history-changing win for Iran” and decrying the “level of incompetence.”
Despite the ceasefire, Tehran launched a missile barrage toward Israel after the announcement, and Gulf states remained on high alert. The IDF reported overnight strikes in Iran targeting launch sites and disrupting a planned missile barrage.
The State's Imperial Posture
The White House celebrated the ceasefire, with aides crediting the U.S. military’s “prowess” and Trump’s “maneuvering” for setting the conditions. This aligns with President Trump’s earlier claims that the United States had “already met and exceeded all Military objectives” and was “very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East.” Defense Secretary Pete Hegseth and General Dan Caine, chairman of the Joint Chiefs of Staff, were scheduled to hold a press conference on Wednesday morning.
Trump’s approach follows a pattern of backing down from maximalist demands, having used two-week deadlines in various major decisions, including a prior threat to launch a bombing campaign against Iran last summer, and negotiations to end Russia’s war with Ukraine. He also abandoned “Liberation Day” tariffs in April 2025 after they caused financial markets to go haywire. Democratic lawmakers had previously decried Trump’s threat to wipe away an entire civilization as “a moral failure,” and Pope Leo XIV warned that strikes against civilian infrastructure would violate international law, calling Trump’s comments “truly unacceptable.”
Limited Ceasefire, Unresolved Contradictions
International reactions to the ceasefire highlighted its fragile and limited scope. Pakistan, acting as a key mediator, welcomed the agreement, with Prime Minister Shehbaz Sharif announcing an “immediate ceasefire everywhere, including Lebanon and elsewhere.” However, Prime Minister Benjamin Netanyahu later denied that the ceasefire included Lebanon. Egypt, Australia, Germany, and Turkey also welcomed the pause in hostilities, with several thanking Pakistan for mediation efforts.
Malaysian Prime Minister Anwar Ibrahim emphasized the need for the “ten-point plan” to be translated into a “comprehensive peace deal,” not only for Iran but also for Iraq, Lebanon, and Yemen, and insisted the ceasefire should include Palestine. He also called for the international community to “ensure unimpeded humanitarian access to all civilian populations affected by this war.” Ukrainian Foreign Minister Andrii Sybiha linked the outcome to “American decisiveness,” suggesting it could be applied to force Moscow to cease fire in Ukraine.
The European Union High Representative for Foreign Affairs, Kaja Kallas, described the agreement as a “step back from the brink,” but noted that “the underlying causes of the war remain unresolved.” China, identified as Iran’s biggest trading partner and the United States’ most significant economic competitor, quietly assisted in finding a pathway toward the ceasefire, according to unnamed officials. The emerging ceasefire and plan to reopen the Strait of Hormuz were expected to be central to talks between Trump and NATO Secretary-General Mark Rutte at the White House.