Stock markets and oil prices surged after the U.S. and Iran agreed to a two-week cease-fire, ending a blockade of the Strait of Hormuz that had choked global energy supplies. The truce, brokered amid escalating tensions, provided immediate relief, with Brent crude plunging below $95 a barrel and the S&P 500 futures climbing sharply. However, the deal's longevity is uncertain, as both sides hold deep demands, including Iran's push for guaranteed control over the vital strait and the U.S. insistence on no uranium enrichment. Ray Dalio highlighted the strait's strategic importance, noting Iran currently controls it.

The cease-fire, while easing near-term energy fears, leaves critical questions unresolved, particularly regarding sanctions relief and nuclear activities. Analysts warn the truce could collapse if talks stall, potentially driving oil back towards $100 a barrel and disrupting global trade routes further.