As the world watched in anticipation, a ceasefire agreement was confirmed hours before the official deadline imposed by US President Trump. The news sent shockwaves through global markets, with investors breathing a collective sigh of relief as the threat of further conflict seemed to dissipate. According to reports, both sides have agreed to a two-week ceasefire, during which time negotiations are set to take place in Pakistan.

While the details of the agreement remain unclear, the mere fact that progress has been made is seen as a positive sign by investors. The Strait of Hormuz, a critical waterway for global oil shipments, has been reopened, providing a much-needed respite to markets worried about supply disruptions. The shift in sentiment has led to a global risk rally, with major stock indices surging higher and safe-haven assets like gold and the yen seeing modest declines.

The path forward remains uncertain, but for now, investors are choosing to focus on the potential upside of the ceasefire agreement. The next round of talks is set to take place on Friday in Pakistan, and while there are no guarantees of an ultimate resolution, any progress towards a lasting peace is likely to be met with enthusiasm by markets.