June 24, 2025 — Global financial markets reacted positively to the surprise announcement of a ceasefire between Israel and Iran, with equities gaining and oil prices retreating from recent highs. The truce, brokered by U.S. President Donald Trump, sparked hopes of a de-escalation in the region and reduced fears of a prolonged geopolitical crisis that had weighed on investor sentiment for nearly two weeks.

Oil Tumbles as Supply Fears Ease

Brent crude fell as much as 5.6%, dipping below levels seen before Israel’s initial strikes on Iranian nuclear sites earlier this month. While prices recovered slightly to trade near $69 per barrel, the sharp move reflects easing concerns over disruptions to energy supply and shipping routes.

However, geopolitical tensions remain fluid. Despite the truce, Israel reported a missile launch from Iran, prompting a military response. Iran, via state media, denied violating the ceasefire agreement.

Stocks Climb Globally

The ceasefire news triggered a broad-based rally in global equities.

• S&P 500 futures rose 0.8%, suggesting another strong session for U.S. markets.
  
• European stocks climbed 1.3%.
  
• Asian markets recorded their biggest one-day gain in over a month.
  

Investors rotated back into risk assets, with the U.S. dollar weakening against a basket of major currencies. Gold dropped 1.3% as safe-haven demand declined.

Among the strongest performers in currency markets were the New Zealand and Australian dollars, typically sensitive to shifts in global risk appetite. The Japanese yen also gained, while the dollar eased after previously strengthening during the conflict.

Eyes Turn to Powell and Tariffs

While markets digested geopolitical headlines, attention is now shifting toward U.S. monetary policy and trade dynamics.

Federal Reserve Chair Jerome Powell is set to testify before Congress later today and again on Wednesday. Investors are watching closely for clues about future interest rate decisions amid mixed economic signals and divided opinions within the Fed.

With geopolitical tensions temporarily easing and oil prices cooling, financial markets are finding room to rally. However, uncertainty lingers. The durability of the Middle East ceasefire, upcoming tariff decisions, and Fed policy signals will be critical in shaping the next phase of market direction.