European stock markets soared at the start of trading this morning after the US and Iran agreed a two-week ceasefire, with investor relief sending the Frankfurt index surging 5%.
Paris rallied 3.5% and London jumped 3% in initial deals, with airlines among the biggest gainers as oil prices plunged.
The Dublin market also opened with gains, jumping by 2.3%.
The Irish banking shares all opened with strong gains, while Ryanair, Cairn Homes and Glenveagh Properties also moved higher.
Earlier in Asian trade, Japan’s Nikkei index closed up more than 5% and South Korea’s Kospi gained nearly 7%.
Market reaction was swift after US 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 20% 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.
Energy markets also responded swiftly, with Brent crude futures falling 15% below $100 a barrel, offering some respite after weeks of elevated oil prices.
European equities have been under intense pressure since the US-Israel military campaign against Iran erupted on February 28, with the continent’s heavy dependence on oil imports throught he largely blocked passage amplifying the pain.
Sectors linked to travel, industrials, and banking advanced between 5% and 7%, as they are typically seen as prime beneficiaries of lower energy costs and falling bond yields.
Meanwhile, the energy sector lost 4.2% as crude prices tumbled.
Investors will turn their attention to euro zone retail sales and producer price data, due later in the day, which could provide further insight into the economic impact of recent energy market volatility.