Market reaction to 'Hormuz'
Sharp volatility was observed in gold and oil following the reopening of the Strait of Hormuz to ship traffic.
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Iranian Foreign Minister Abbas Araghchi announced that the Strait of Hormuz will remain open throughout the duration of the ceasefire.
Oil prices had fallen sharply following US President Donald Trump's remarks that "we are very close to a deal with Iran." The decline accelerated following Araghchi's statement.
GOLD AND OIL PRICES
The decline in Brent crude exceeded 13 percent. As of 17:45, US crude oil was trading below 82 dollars, and Brent crude was trading below 87 dollars.
The rise in gold prices exceeded 1.5 percent. At the same time, ounce gold was trading at 4,870 dollars.
Silver prices rose by more than 5 percent. Ounce silver was trading at 82.3 dollars.
The increase in the Borsa Istanbul BIST 100 index exceeded 2.5 percent.
Bitcoin was trading at 77,260 dollars, up 2.8 percent.
NATURAL GAS PRICES ALSO FELL
Iran's announcement that it would open the Strait of Hormuz to all commercial vessels reduced supply concerns, leading to a sharp drop in European natural gas prices.
Following the statements, the May natural gas contract trading at the Dutch-based virtual natural gas trading hub TTF fell 8.7 percent to 38.74 Euros as of 16:19 compared to yesterday's close. The contracts had finished the previous day at 42.42 Euros.
Ship traffic in the Strait of Hormuz, a critical transit route for global goods and energy trade, had been largely cut off due to the escalating conflict in the Persian Gulf following attacks by the US and Israel on Iran and Iran's retaliations.