Oil prices fell for a second consecutive day on Wednesday, while equity markets rallied after President Donald Trump announced a temporary pause to the U.S. effort to keep ships moving through the Strait of Hormuz. The pause, made at the request of Pakistani mediator and amid progress toward a final agreement with Iran, eased concerns about further attacks on shipping and helped lift risk‑on sentiment.
Trump posted on social media that “Project Freedom (the movement of ships through the Strait of Hormuz) will be paused for a short period of time to see whether the agreement can be finalized and signed.” He added that significant progress had been made toward a comprehensive deal with Iranian representatives. The U.S. blockade of Iranian ports remains in place, but the cessation of the offensive phase of “Operation Epic Fury,” announced earlier by Secretary of State Marco Rubio, signalled a de‑escalation of hostilities.
Following the announcement, West Texas Intermediate (WTI) slipped about 1.6 % to $100.62 per barrel, briefly dropping below the $100 mark. Brent crude fell 1.7 % to $108.06 a barrel. The lower oil prices contributed to gains in major indices, with the S&P 500 and Nasdaq posting record‑level advances driven by strong technology earnings.
Asian markets posted broad gains. Hong Kong’s Hang Seng rose 0.9 % to 26,128.13, Shanghai’s Composite gained 1.1 % to 4,157.29, and Seoul’s Kospi surged more than 5 % to break the 7,000‑point barrier for the first time. Samsung Electronics led the rally, jumping up to 12 % and pushing its market capitalisation above $1 trillion, making it the second Asian company after Taiwan’s TSMC to reach that level. SK Hynix also rose around 10 %. Over the past year Samsung’s shares have appreciated roughly 300 % as demand for AI chips accelerates South Korean growth.
“Investors found reassurance in President Trump’s comments despite ongoing disruption to shipping routes,” said Fiona Cincotta, senior market analyst at City Index. She noted that continued diplomatic efforts and solid U.S. earnings further supported risk appetite, though she warned that prolonged closure of the Strait could create headwinds for global trade.
Key market figures at approximately 02:30 GMT were:
– WTI crude: $100.62/bbl (‑1.6 %)
– Brent crude: $108.06/bbl (‑1.7 %)
– Hang Seng: 26,128.13 (+0.9 %)
– Shanghai Composite: 4,157.29 (+1.1 %)
– Dow Jones (close): 49,298.25 (+0.7 %)
– FTSE 100 (close): 10,219.11 (‑1.4 %)
The pause in “Project Freedom” and the reported diplomatic progress suggest a potential de‑escalation in the Gulf, which could stabilise oil markets and sustain the current equity rally, pending further developments on the Iran‑U.S. negotiations.
