FRANKFURT (dpa-AFX) - The agreement on a two-week ceasefire in the Iran conflict sparked immense relief among global investors on Wednesday, primarily driven by a massive collapse in oil prices. Traders described the development as a "gift from Pakistan," after the neighboring country mediated an immediate truce.
Consequently, oil prices plunged by double-digit percentages. Crude remains the primary barometer for inflation and economic growth concerns. The price of a barrel of North Sea Brent for June delivery dropped below 91 US dollars at one point, reaching its lowest level since mid-March.
Crucially for global markets, Iran intends to reopen the Strait of Hormuz to maritime traffic. However, according to the Fars news agency, the country is reportedly considering withdrawing from the agreed two-week truce with the US, citing ongoing Israeli strikes against Hezbollah in Lebanon.
The Dax surged 5.06 percent to 24,080.63 points, marking its largest single-day gain in over three years. Measured against its year-to-date low at the end of March, the German benchmark index has now recovered nearly two-thirds of the losses triggered by the Iran conflict. The MDax climbed 5.43 percent to 30,295.08 points./bek/he
