But traders warned that the euphoria could be short-lived. Both sides have threatened to resume hostilities if the two-week pause does not lead to an agreement.
“In reality, the markets are not pricing in peace but a window for negotiation,” said John Plassard of Cite Gestion.
“And that is precisely the issue: in two weeks, either this window will lead to a lasting agreement, or it will only postpone and amplify the energy shock that everyone fears.”
Oil prices remain much higher and equity prices lower than before the United States and Israel attacked Iran on Feb 28.
“I don’t think we’re going to (quickly) go back to the levels we were at before the war,” said Kathleen Brooks, research director at XTB traders. “Energy infrastructure across the Gulf has been targeted.”
Maritime monitor Marine Traffic noted that two ships had passed through the waterway since Iran agreed to reopen it, through which much of the world’s oil, gas and fertiliser passes.
But one major German shipping company, Hapag-Lloyd, said it was too early for its trapped ships to set sail out of the Gulf.
Shipping journal Lloyd’s List estimated that around 800 ships have been stuck in the Gulf since the end of February.