Oil prices sink and US stock futures jump as US and Iran agree to 2-week ceasefire

[Omaha Steve]

Source: AP

By STAN CHOE
Updated 8:55 PM CDT, April 7, 2026
Leer en español

NEW YORK (AP) — Oil prices plunged below $100 a barrel and Asia markets and U.S. stock futures jumped after the U.S. and Iran agreed to a two-week ceasefire that includes the reopening of the Strait of Hormuz.

Japan’s benchmark Nikkei 225 rose 4.8% and South Korea’s Kospi gained 5.6%. Futures for the S&P 500 advanced 2.3% as of 9:30 p.m. EDT, while Dow futures rose 2%.

Futures for U.S. crude oil sank 14.3% to $96.83 a barrel and Brent crude oil, the international standard, dropped 13.3% to $94.74. Oil prices had spiked because the war snarled the production and transportation of crude in the Persian Gulf. Much of that oil exits the gulf through the Strait of Hormuz to reach customers around the world, but Iran had blocked it to enemies.

Late Tuesday, Trump said he was holding off on his threatened attacks on Iranian bridges, power plants and other civilian targets. Iran’s foreign minister said passage through the strait would be allowed for the next two weeks under Iranian military management.

Read more: https://apnews.com/article/financial-markets-iran-oil-bcd3342cd0b4e60ebedc1e81db08f465

[iemanja]

1. The market is so gullible.

[jgmiller]

3. The market just follows the money

its isn't anything except money managers trying to make as much as possible. They have no allegience to any political belief except the one that makes the most money.

[iemanja]

4. They hang on his every word

That was clear to me from my last discussion with my financial advisor. Their notion of making money is framed by what Trump says.

[fujiyamasan]

2. I heard some half million $ in oil futures were sold before it was announced

[progree]

5. Sadly the majority of the market participants are losing money, at least on a relative basis compared to hold

Most people who sell AFTER a hawkish war announcement, like I'm going to end a civilization, are selling after the market has already sunk considerably.

And most people who buy AFTER a dovish announcement, like a 2-week ceasefire, are buying after the market has already risen considerably.

Basically sell low and buy high, which is bad compared to just hanging on.

Now those with inside knowledge of the next upcoming announcement, and buy BEFORE the dovish announcements (at a relative low point in the market), and who sell BEFORE the hawkish announcements (at a relative high point in the market) definitely make money.

I don't believe in trying to time the market, unless the market falls like 25%, then I'll buy (shifting from fixed income to broad-based equity funds, like a total U.S. market index fund, because I have very little NEW money to invest).

But a regular person, with no insider knowledge, would have done well (better than hold anyway) by buying when the mood was gloomy some time after a hawkish annoucement, and by selling after a "peace in our time" announcement like now.

BTW, at Tuesday's close, the S&P 500 is down 3.8% since February 27 (the day before the US/Israel attacks on Iran), and down 3.3% year-to-date.

At this moment, Wednesday 2:23 AM ET, S&P 500 futures are up 2.7% since the Tuesday close.