Oil prices fell and European shares jumped more than 3pc on Wednesday as a two-week Middle East ceasefire sparked a relief rally across global markets, raising hopes that oil and gas flows through the Strait of Hormuz could soon resume.
In energy markets Brent crude futures fell 15pc, to below $100 a barrel, offering some respite after weeks of elevated oil prices though that is by no means cheap by pre-war standards.
The pan-European STOXX 600 index was up 3.6pc at 611.73 points, as of 0713 GMT, and poised for its best session in a year, if current momentum persists.
By 8.30am Ryanair’s stock was up 9.33pc at €26.49 a share. Bank of Ireland (+5.29pc) and AIB (+4.09pc) were also among the big gainers, as shares that have been most battered since the start of the Iran war rebounded. Housebuilders Cairn and Glenveagh also saw very strong gains, the sector is exposed to materials costs that have been pushed higher by the war.
In Germany the DAX was up 4.6pc, London’s FTSE 100 climbed 2.3pc.
Ryanair (Peter Byrne/PA)
News in 90 seconds – Wednesday, April 8
Market reaction was swift after U.S. President Donald Trump agreed to a two-week ceasefire with Iran, less than two hours before his deadline for Tehran to reopen the Strait of Hormuz, where 20pc of the world’s oil transits, or face devastating attacks on its civilian infrastructure.
Beyond the immediate relief, investors are waiting to see whether the truce can pave the way for a lasting resolution.
European equities have been under intense pressure since the U.S.-Israel military campaign against Iran erupted on February 28, with the continent’s heavy dependence on oil imports through the largely blocked passage amplifying the pain.
Meanwhile, energy sector lost 4.2pc as crude prices tumbled.
Elsewhere, Dubai’s benchmark stock index surged the most in more than a decade after the US and Iran ceasefire.
The Dubai Financial Market General Index jumped as much as 8.5pc, the biggest intraday increase since December 2014, as investors piled into real estate and bank shares
Japan’s Nikkei 225 benchmark gained the most in almost a year after the US and Iran agreed to a two-week ceasefire fuelling a relief rally across Asia.
The Nikkei rose 5.4pc, the most since April 10, 2025 to 56,308.42, while the broader Topix climbed 3.3pc.