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Published on 08/04/2026 – 9:14 GMT+2•Updated
9:25

Oil prices have fallen sharply and Asian markets surged on Wednesday after the US and Iran agreed to a two-week ceasefire that includes reopening the Strait of Hormuz but traders are cautious so far until the truce proves durable.

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Brent crude stood at $92.99 per barrel as of Wednesday morning, up 28.30% since the war began in late February but well below the peaks of recent weeks which went up to $110 per barrel.

WTI crude sat at $94.70 per barrel, still 41.30% above pre-war levels despite the ceasefire-driven selloff. Wholesale gasoline was at $2.94 per gallon, also up more than 41% since the conflict began.

The moves follow a dramatic overnight plunge after US President Donald Trump said he was holding off on threatened strikes against Iranian bridges, power plants and other civilian infrastructure.

Iran’s foreign minister confirmed the Strait of Hormuz would be open to shipping for the next two weeks under Iranian military management.

Asia surges, Europe slides

Asian markets responded with enthusiasm. Japan’s Nikkei 225 gained 5.0% in early Wednesday trading, South Korea’s Kospi soared 5.9% and Hong Kong’s Hang Seng jumped 2.6%.

European markets told a different story. The Stoxx Europe 600 was down 6.82% in early trading, reflecting the accumulated damage from weeks of war-driven volatility rather than Wednesday’s ceasefire bounce — European markets having closed before the overnight news broke.

On Wall Street, the S&P 500 is down by 3.81% in pre-market US trading, having swung sharply during Tuesday’s session before clawing back losses after Pakistan’s prime minister urged Trump to extend his deadline and called on Iran to reopen the strait.

Cautious optimism

The ceasefire has done little to fully settle markets.

Attacks were still reported in Israel, Iran and across the Gulf region in the early hours of Wednesday, and neither side has specified when the truce formally begins.

The worry that has stalked markets since late February remains, namely that a prolonged disruption to Gulf oil flows will keep energy prices elevated long enough to push a fresh wave of inflation through the global economy — with or without a ceasefire.

Sveindís Jónsdóttir scored two goals and Gisele Thompson also scored to lead Angel City to a 3-1 win on the road Saturday over rival Bay FC.

Kennedy Fuller’s long and pinpoint pass found Jónsdóttir who calmly finished on the breakaway for the 1-0 lead in the third minute. Jónsdóttir assisted on Thompson’s goal in the 32nd minute to double Angel City’s lead.

Jónsdóttir scored again in the 54th minute when she headed home Evelyn Shores’ corner kick to make it 3-0.

Taylor Huff scored Bay FC’s lone goal in the 55th minute. The midfielder was later sent off with two yellow cards, both in second-half stoppage time.

Angel City FC defender Savy King played 82 minutes in her first start since suffering a cardiac event during a game on May 9 that led to heart surgery.

The win snapped a nine-match road winless streak for Angel City. Their last win away from BMO Stadium came on May 2 versus Washington Spirit.

WINNIPEG, Canada — Ryan Poehling had a goal and an assist to lead the Ducks to a 4-1 victory over the Winnipeg Jets on Tuesday night.

Alex Killorn and Jackson LaCombe also registered a goal and an assist. Tim Washe also scored for Anaheim. Lukas Dostal made 12 saves for the Ducks, who extended their lead in the Pacific Division to three points over Vegas.

Morgan Barron scored for Winnipeg. Connor Hellebuyck had 30 saves for the Jets, who saw their three-game win streak and six-game point streak halted.

After a scoreless first period in which Anaheim outshot Winnipeg 8-2, the Jets opened the scoring at 5:04 of the second when Barron notched his 10th of the season, assisted by Elias Salomonsson and Cole Perfetti.

The Ducks quickly flipped the script, scoring three times in less than two minutes. Washe tied it at 6:24 and Poehling gave Anaheim the lead just 14 seconds later. Killorn added the insurance marker at 8:08 to give the visitors a two-goal lead.

The Ducks outscored the Jets 12-6 in three games this year. Dostal has won 13 of his past 15 games.

Vladimir Putin has presented multiple proposals to mediate the conflict in Iran, according to the Kremlin. Kremlin spokesman Dmitry Peskov said on Tuesday that the proposals are “still on the table,” emphasizing Russia’s readiness to help reduce tensions.

Peskov noted that any diplomatic solution requires coordination across multiple parties and agreements, signaling that Moscow intends to play a careful, measured role rather than rushing into mediation. This framing underscores Russia’s attempt to position itself as a credible intermediary while retaining influence over the conflict’s trajectory.

Recent Putin-Trump Contact

The remarks came after a phone call between Putin and Donald Trump on Monday, in which Putin reportedly offered options to end the Iran war quickly. Trump publicly said that Putin “wants to be helpful,” but added that resolving the Ukraine conflict would be an even more useful contribution.

The exchange highlights how Russia’s involvement in Iran is intertwined with its broader geopolitical interests, particularly in Europe and the Middle East. Moscow’s dual focus on positioning as a mediator and protecting its strategic priorities in Ukraine illustrates its careful diplomatic balancing act.

Russia-Iran Relations and Strategic Calculations

Russia maintains a strategic partnership with Iran, which provides it leverage in regional energy and security affairs. While Moscow has condemned U.S. and Israel military actions against Iran, it has also economically benefited from the resulting surge in oil prices.

Reports that Russia may have shared targeting intelligence with Tehran have drawn scrutiny, although Peskov declined to confirm or deny them. By avoiding direct comment, Russia preserves operational flexibility and manages international perceptions, allowing it to maintain influence with Iran while publicly projecting a mediating stance.

Analytical Perspective: Mediation Amid Strategic Interests

Russia’s position reflects a calculated effort to balance diplomacy and national interest. Keeping mediation proposals publicly “on the table” serves several purposes:

1. Diplomatic Leverage: By signaling willingness to mediate, Russia positions itself as a necessary interlocutor for any resolution, increasing its bargaining power with both the U.S. and Iran.
2. Strategic Buffering: Moscow preserves its ties with Tehran, protecting a partner in the Middle East while benefiting from higher oil prices amid global supply shocks.
3. Geopolitical Messaging: The Kremlin is communicating to the West that Russia can influence outcomes in the Middle East, reinforcing its image as a global power capable of shaping crises beyond its immediate borders.

This approach highlights a broader Russian strategy: maintain engagement in multiple theaters simultaneously Ukraine, Iran, and energy markets while avoiding overt entanglement that could provoke direct confrontation with the U.S. or NATO.

Conclusion: Patient Diplomacy as a Strategic Tool

Moscow’s emphasis on patience and coordination indicates that Russia is playing the long game, using mediation as a tool to expand influence rather than as a purely humanitarian effort. Analysts suggest that this approach allows Russia to extract maximum strategic advantage, balancing its regional partnerships, energy interests, and global standing, while leaving room to maneuver depending on how the Iran conflict evolves.

Russia’s dual role as both potential mediator and strategic partner to Tehran exemplifies the complex interplay of diplomacy, energy politics, and military calculation in the Middle East.

With information from Reuters.