Oil prices plummet and stock markets soar after Trump's truce with Iran

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The Ibex-35 is up four per cent, with Wall Street futures pointing to gains of three per cent

Cristina Cándido

Wednesday, 8 April 2026, 13:07

Investors are breathing a sigh of relief after the new two-week ceasefire in the Middle East agreed between Tehran and Washington. Following the announcement, which includes "safe" transit through the Strait of Hormuz, commodity prices plummeted.

The idea of a truce, even a temporary one, immediately reduced fears of a prolonged closure of this maritime passage and further disruption to global energy flows. As a result, the price of oil, which has been acting as a market barometer since the attacks began on 28 February, plunged 16 per cent below the psychological barrier of 100 dollars, while the benchmark price of gas in Europe fell by 19 per cent.

Nevertheless, experts are cautious, noting that although crude oil prices are falling sharply today, they do not believe they will return to pre-conflict levels in the short term. "This will undoubtedly have a negative impact on inflation, at least for a few months - a fact that central banks will have to deal with," head of analysis at Link Securities Juan José Fernández-Figares says.

The market, however, is already adapting to expectations that lower oil prices will help curb inflation and revive economic growth. With the worst-case scenario ruled out after President Donald Trump went from threatening to send Iran back to the Stone Age to predicting a "golden age" in the region in just a few hours, European stock indices are posting gains of around five per cent.

In the case of the Ibex-35, the rally exceeded four per cent at the open, with IAG and steelmakers ArcelorMittal and Acerinox among the top performers. Meanwhile, Wall Street futures are pointing to more moderate gains of three per cent.

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