CNBC Daily Open: Markets cheer as Trump and Tehran agree to 2-week ceasefire

Global markets rallied after President Donald Trump announced a two-week ceasefire with Iran, accompanied by Tehran’s signal to reopen the Strait of Hormuz.

The de-escalation provides immediate relief to investors who had been pricing in the risk of severe energy supply disruptions. This matters because the Strait of Hormuz is a critical chokepoint for global oil transit. Securing this route and pausing hostilities significantly reduces the threat of sudden crude price spikes, thereby stabilizing inflation expectations and encouraging a broader “risk-on” environment for equities.