Oil Prices Plunge 14% and Spain's IBEX Surges as US and Iran Agree Ceasefire — Strait of Hormuz to Reopen

Markets Rally on Ceasefire News

Oil prices have tumbled by nearly 14% and Spain's stock market has surged after the US and Iran agreed to a two-week ceasefire, brokered by Pakistan.

Despite President Trump's earlier threats to destroy Iran's "whole civilisation," the US agreed to a ten-point truce proposal presented by Iran, requiring US military withdrawal from the Middle East and an end to attacks on Iran and its allies.

Strait of Hormuz to Reopen

Iran's Foreign Minister Seyed Abbas Araghchi announced the opening of the Strait of Hormuz — the vital chokepoint through which one-fifth of the world's oil and gas flows.

Tehran has said that for the next two weeks, starting from April 9 or 10, ships will be allowed to pass through the strait under the supervision of Iran's military. Iran will retain control of the waterway under the terms of the deal.

Peace talks are set to begin in Islamabad on April 10.

Oil Prices Drop Sharply

Brent crude oil fell by 13.9% to $94.10 per barrel — well below the $119 peak reached on March 31. For Spain, this could eventually translate into cheaper prices at the pumps and lower energy costs, though it will take time to filter through.

Spain's IBEX and European Markets Surge

The ceasefire was welcomed by stock markets across Europe:

• Spain's IBEX 35 — up 4.2%
• Pan-European Stoxx 600 — up 4%
• UK's FTSE 100 — up almost 3%

Airline Stocks Soar

Travel companies, battered by six weeks of rising fuel costs and flight cancellations, saw their stocks surge:

• Air France — up 14.5%
• Lufthansa — up 11%
• IAG (British Airways owner) — up 9.5%
• TUI — up nearly 12%

But It's Not Over Yet

Pakistan's Prime Minister Shehbaz Sharif has already urged "restraint" following reports of ceasefire violations across the conflict zone. And with ships passing through the Strait of Hormuz requiring permission from Iran, it is far from business as usual.

For Spain, the ceasefire is welcome news for the economy, energy prices and summer travel plans — but until a lasting peace is secured, the relief may prove temporary.

This article is based on reporting from The Olive Press, published April 8, 2026. This is a developing story. This article is for informational purposes only and does not constitute financial advice.