Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com -- Middle East banking stocks rallied on Wednesday, tracking a broader rebound in global equities after a de-escalation in the conflict between the U.S., Israel and Iran boosted investor sentiment.
Shares in Emirates NBD Bank surged nearly 10% and First Abu Dhabi Bank jumped 8%, while Qatar National Bank rose 4.2%. Abu Dhabi Commercial Bank also jumped more than 5%.
The surge followed a late announcement from Donald Trump, who agreed to a two-week ceasefire with Iran just hours before a self-imposed deadline tied to the reopening of the Strait of Hormuz. Earlier in the day, Trump had warned that "a whole civilization will die tonight" if his demands were not met, marking a sharp reversal in tone.
The ceasefire, mediated in part by Pakistan Prime Minister Shehbaz Sharif, includes plans for U.S. and Iranian delegations to meet in Islamabad later this week. Trump said the agreement depends on Iran halting its blockade of oil and gas flows through the strait, a key route for roughly one-fifth of global oil shipments.
Iran signaled its willingness to cooperate. Foreign Minister Abbas Araqchi said Tehran would stop counter-attacks and ensure safe passage through the waterway.
"This will be a double sided CEASEFIRE!" Trump wrote on Truth Social, adding that negotiations were advancing toward “Longterm PEACE with Iran, and PEACE in the Middle East.” He also described a 10-point proposal from Iran as a “workable basis” and said a final agreement could be reached within the two-week window.
Markets responded quickly. Stocks across Asia moved higher, with Japan’s Nikkei rising 5.4%, while China’s CSI300 and Hong Kong’s Hang Seng gained 3.4% and 3.1%. U.S and European equities are also expected to open higher.
Oil prices dropped sharply, with U.S. crude futures falling to their lowest level since March 26.