SINGAPORE, April 22 - U.S. stock futures climbed and the dollar showed signs of instability on Wednesday after President Donald Trump said he would extend the ceasefire with Iran indefinitely, keeping investor sentiment on the positive side even as the Strait of Hormuz remained closed and energy markets stayed on edge.
Trump’s statement appeared to be made unilaterally; it was not immediately clear whether Tehran or U.S. ally Israel would agree to prolong the ceasefire that began two weeks ago. Despite that ambiguity, markets registered the announcement as supportive of risk-taking.
In early Asian trading, S&P 500 futures were up 0.5% and Nasdaq futures rose 0.6%. MSCI’s broad index of Asia-Pacific shares outside Japan slipped 0.14% after reaching a seven-week high in the previous session. Japan’s Nikkei consolidated recent gains and traded 0.2% lower.
Global equities have recovered markedly since a sharp selloff in March tied to the Middle East conflict, with indices rebounding this month to roughly pre-war levels on hopes for a peace settlement and the temporary ceasefire.
"It appears markets were right to assume peak war uncertainty is behind us," said Matt Simpson, a senior market analyst at StoneX. "Risk seems likely to remain buoyant and dips viewed favourably by equity bulls. The closure of the Strait of Hormuz is already priced in."
Trump also said he would maintain a U.S. Navy blockade of Iranian ports and shoreline facilities. At the same time, Tehran has effectively closed the Strait of Hormuz, a key maritime route through which about one-fifth of the world’s energy supply typically transits, a development that has produced a global energy shock.
Energy markets reflected that tension: U.S. West Texas Intermediate crude futures rose 0.44% to $90.12 a barrel, after the benchmark contract had gained 2.8% on Tuesday.
Currency moves were mixed in early trade. The euro last traded at $1.1748, the Japanese yen strengthened slightly to 159.26 per dollar, and sterling firmed to $1.35195.
While traders welcomed the ceasefire extension as a positive for risk assets, the lack of confirmation from other parties to the truce and ongoing maritime disruptions left material uncertainties in place for energy and shipping markets as well as for broader investor sentiment.