US stock futures moved higher in pre-market trade after Donald Trump signalled a temporary de-escalation in the US-Iran conflict, proposing a two-week ceasefire. The announcement came just ahead of his deadline for Iran to reopen the Strait of Hormuz, a key route for global energy supplies.
At around 16:10 IST, futures linked to the Dow Jones Industrial Average rose 1,193 points, or 2.5%. Futures for the S&P 500 and Nasdaq 100 were also up 2.6% and 3.4% at 6,831.2 and 25,201.75, respectively.
The uptick came after Iran’s Supreme National Security Council also agreed to reopen the Strait for two weeks, subject to a pause in hostilities.
Oil prices declined following the development. West Texas Intermediate crude futures fell over 15% to $95.75 per barrel, while Brent crude dropped more than 13% to $94.40, indicating some easing in supply concerns.
Trump said the proposed ceasefire would depend on Iran keeping the Strait operational, with Israel also reportedly on board.
In the previous session on Tuesday, the S&P 500 and Nasdaq Composite edged up 0.08% and 0.10%, respectively, on expectations of a possible ceasefire, while the Dow Jones declined 85.42 points.
Separately, Pakistan’s benchmark index recorded a sharp intraday rise on April 8, gaining over 12,000 points after the country played a role in facilitating the ceasefire discussions.
Prime Minister Shehbaz Sharif had urged Trump to extend the deadline for potential strikes and requested Iran to reopen the Strait as a “goodwill gesture” in a post on X.
