Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are up by over 2% after the U.S. and Iran agreed to a two-week ceasefire. As part of the agreement, Iran will reopen the Strait of Hormuz for two weeks and allow ships to cross if they coordinate with Iranian armed forces. Two ships have already safely crossed Hormuz following the ceasefire.
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Trade QQQ with leverageMeanwhile, officials from the U.S. and Iran will meet in Islamabad, Pakistan on Friday to discuss terms to permanently end the war.
U.S.-Iran Tensions Spike after Israel Attacks Lebanon
However, tensions are already beginning to reignite. Israel struck several targets in Lebanon on Wednesday morning, with Iran cautioning that the attacks violate the ceasefire and threatening to close Hormuz. White House Press Secretary Karoline Leavitt later stated that Lebanon is excluded from the ceasefire agreement with Iran.
“Violations of ceasefire have been reported at few places across the conflict zone which undermine the spirit of peace process,” said Pakistani Prime Minister Shehbaz Sharif.
Elsewhere, President Trump announced a 50% tariff on countries that supply Iran with arms, sending a warning to China and Russia.