Iran ceasefire: natural gas and oil prices finally fall, stock markets rise sharply

The Agreement between the US and Iran on a ceasefire brought a lot of relief to European equity investors on Wednesday – especially because of the massive collapse in oil prices. Several stockbrokers spoke of a “Gift from Pakistan“. Iran’s neighbor brokered a far-reaching, immediate ceasefire. As a result, the ceasefire collapsed Oil prices at night around 16 percent away. The ATX in Wien rose by 3.6 percent German DAX by 4.9 percent.

Die Crude oil prices are currently the most important indicator of inflation and economic concerns on the market. The Price for a barrel of North Sea Brent fell at times under 92 dollars and so on that lowest level since mid-March.

Euro-Stoxx-50 up more than four percent

Investors’ willingness to take risks increased accordingly. The European leading index Euro-Stoxx-50 climbed 4.14 percent to 5,866 points in early trading. He moved to Frankfurt DAX by 4.45 percent to 23,940 points and won in London FTSE-100 2.33 percent to 10,590 units.

What is particularly important for the global markets is that Iran Strait of Hormuz nun reopen to shipping traffic wants. The strait is one of the world’s most important transport routes – and not just for oil and gas. Their opening was the US condition for a ceasefire.

European natural gas prices are falling significantly

The price of European natural gas also fell significantly after the agreed ceasefire in the Iran war. The relevant futures contracts fell by up to 20 percent, meaning the biggest daily loss in over two years. The price of the trend-setting model fell on the Amsterdam stock exchange Natural gas futures contract TTF for delivery in one month recently by 17 percent to 44.13 euros per megawatt hour (MWh). Since the attacks by the USA and Israel against Iran began more than five weeks ago, the price of gas had climbed to up to 74 euros.

On the reporting day, following the agreed ceasefire between the USA and Iran, investors are turning their attention to the losers and winners of the war so far. Stand like that Oil and gas stocks particularly under pressure in early trading. The Stoxx Europe 600 Oil & Gases industry index had climbed by up to 15 percent to a record high as energy prices soared. Now it is falling by more than two percent with oil and gas prices falling by double digits.

On the other hand, stocks from the raw materials, tourism, banking, real estate and consumer sectors are highly sought after. The real estate industry index Stoxx Europe 600 Real Estate was still down 13 percent since the start of the war, despite the recovery already taking place. Before the war started at the end of February, it had been trading at a high since autumn 2024, before rising interest rates in particular sent it down significantly. Commodity stocks and banks were primarily affected by economic concerns.

Among the individual stocks in the Euro Stoxx 50, the shares of Safran and Siemens Energy were the frontrunners, each with premiums of more than ten percent. The shares of UniCredit, Schneider Electric, Siemens, Saint Gobain and Infineon each climbed more than seven percent. At the end of the index, however, TotalEnergies lost 6.6 percent in price.

Leading stock exchanges in Asia very strong

The Asian stock markets also reacted with massive gains on Wednesday to the ceasefire in the Iran war and the significant fall in oil prices. The stock markets, which had previously suffered the most from the rise in oil prices, rose the most. So the leading indices belonged in Japan and South Korea to the front runners.

“With the ceasefire, there will be no further escalation for the time being,” said economist Thomas Gitzel from VP Bank. “Above all, the significant fall in oil prices gives rise to hopes that the rise in inflation rates will remain a short episode.”

However, market experts warned that the conflict should be shelved. An agreement on a final ceasefire is unlikely to be easy. “In terms of content, the positions remain far apart,” said the Landesbank Baden-Württemberg. Despite the short-term relief, the overall picture remains tense.

The key question for the markets is to what extent shipping through the Strait of Hormuz will normalize in the coming days, market strategists at Deutsche Bank added.

The Japanese Nikkei 225 closed 5.39 percent higher at 56,308.42 points. Technology and bank stocks were in high demand. Cyclical stocks also rose significantly.

The increases were even stronger South Korea. The semiconductor heavyweights Samsung and SK Hynix drove the market up by almost seven percent. Trading was temporarily suspended due to the strong price movements. South Korea’s dependence on oil imports and intact supply chains has repeatedly led to strong price fluctuations in both directions in recent weeks.

The profits were not quite as high, but still significant Chinese markets. The CSI 300 index, which tracks major stocks in mainland China, rose 3.49 percent. The Hang Seng of the Hong Kong Special Administrative Region was up 3.09 percent.

Die Australian Stock Exchangewhich hadn’t suffered as much in the past few weeks, wasn’t quite as strong. The S&P ASX 200 closed 2.56 percent higher at 8,951.80 points.