World leaders hail Iran truce as stocks rally, oil prices tumble

Two-week truce and reopening of Hormuz are welcomed by both Iran’s allies and Gulf states targeted by Tehran; France, Spain push for ceasefire to also include Israel’s fight with Hezbollah

The international community, including Russia, China and Gulf states targeted by Iran, expressed relief and support on Wednesday for the temporary ceasefire between the US, Israel and Iran, with markets surging as oil prices tumbled.

Trump’s announcement came some 90 minutes before the deadline on his threat to “wipe out Iran’s civilization” if the country did not lift its effective blockade on the Strait of Hormuz, where the route of some 20% of global oil shipments has been choked off, sending energy prices soaring.

Amid the cautious optimism, some countries expressed frustration with Israel, which has said that its battle against the Iran-backed Hezbollah in Lebanon was not part of the truce. In announcing the deal, mediator Pakistan had said that Lebanon would be included.

Writing on X, EU foreign policy chief Kaja Kallas said the Iran truce created a “much-needed chance to tone down threats, stop missiles, restart shipping and create space for diplomacy towards a lasting agreement.”

“The EU stands ready to support those efforts and is in touch with partners in the region,” added Kallas, who was due in Riyadh on Saturday for talks with Saudi Foreign Minister Prince Faisal bin Farhan, Gulf Cooperation Council secretary-general Jassem al-Budaiwi and others.

European nations were largely skeptical of the US-Israeli decision to launch a bombing campaign on Iran on February 28. Their misgivings were compounded when Iran’s effective blockade of the Strait of Hormuz sent energy prices soaring.

Germany’s Chancellor Friedrich Merz said in a statement that the goal was now “to negotiate a durable end to the war in the next days.”

“This can only be achieved by diplomacy,” said Merz, adding that Germany will contribute “to guarantee freedom of navigation in the Strait of Hormuz.”

French President Emmanuel Macron called the ceasefire a “very good thing.”

“We expect, in the coming days and weeks, that it will be fully respected throughout the region and will allow negotiations to take place,” Macron said at the start of a meeting of top defense and security officials.

“Our wish is to ensure that the ceasefire fully includes Lebanon,” he added.

Spain’s Foreign Minister Jose Manuel Albares was more forceful, telling public radio RNE: “All fronts must cease, and all fronts also means Lebanon. It is unacceptable that Israel’s war, Israel’s invasion of a sovereign country like Lebanon… continues,” said Albares.

Israel launched large-scale strikes against Hezbollah on Wednesday afternoon.

Meanwhile, Prime Minister Pedro Sanchez, among the EU’s harshest critics of both Israel and the Iran war, wrote on X that the Iran ceasefire was a “good thing,” but that Spain would not “applaud those who set fire to the world because they show up with a bucket.”

For his part, Lebanon’s President Joseph Aoun welcomed the truce, adding that Beirut “continued efforts to ensure that the regional peace includes Lebanon in a stable and lasting manner.”

Israel has pushed troops farther into Lebanon and carried out massive airstrikes there after Hezbollah renewed its attacks on Israel on March 2, amid the war with Iran.

Israel’s strikes have displaced about a million people and killed over 1,500, according to Lebanese authorities. The IDF says it has killed some 1,100 Hezbollah operatives, including hundreds of members of the terror group’s elite Radwan Force, since March 2.

Zelensky expresses hope Iran ceasefire paves way for diplomacy with Russia

Ukrainian President Volodymyr Zelensky said Wednesday that he welcomed the Iran ceasefire, adding that Kyiv was ready to “respond in kind” if Tehran’s ally Moscow ceased strikes.

“Ukraine has always called for a ceasefire in the war waged by Russia here in Europe against our state and our people, and we support the ceasefire in the Middle East and the Gulf that paves the way for diplomatic efforts,” Zelensky wrote on X.

In a call with reporters, Kremlin spokesman Dmitry Peskov said Russia hopes the US will now have the time and scope to resume three-way peace talks on Ukraine that stalled amid the Iran war.

“We received the news of a truce with satisfaction. We welcome the decision not to proceed further down the path of armed escalation,” said Peskov.

Asked about whether the Iran ceasefire may facilitate fresh talks on Ukraine, he said: “We hope that, in the foreseeable future, (the US) will have more time and greater opportunity to meet in a trilateral format,” referring to talks held between Russia, Ukraine and the US.

Fellow Iran ally China, whose last-minute efforts reportedly helped clinch the Iran ceasefire, also said it welcomed the agreement.

“China has consistently advocated for an immediate ceasefire and cessation of hostilities, as well as the resolution of disputes through political and diplomatic channels,” said Chinese foreign ministry spokesperson Mao Ning. She did not detail what China’s efforts were when asked at a regular news briefing.

Gulf states targeted by Iran say truce is a chance to de-escalate

Middle Eastern nations, including Gulf states that came under Iranian attack and reportedly pushed for harsh strikes on Iran, expressed hope that the truce would work.

Egypt, which helped shuttle messages between the US and Iran in recent weeks, said the truce was a “crucial opportunity that must be seized to pave the way for negotiations,” and that Egypt is committed to “continuing tireless efforts” along with Pakistan and Turkey.

In an overnight call with US envoy Steve Witkoff, Egyptian Foreign Minister Badr Abdelatty “expressed his deep appreciation for this important American step to give diplomacy a chance and start a serious process of American-Iranian negotiations,” said Egypt’s foreign ministry.

Turkey called on all sides to respect the ceasefire.

“We insist on the fact that the temporary ceasefire be fully implemented on the ground and hope that all sides abide by the agreement,” the foreign ministry said in a statement.

Oman’s foreign ministry underlined “the importance of intensifying efforts at this juncture to identify solutions capable of resolving the crisis at its roots and achieving a permanent cessation of the state of war.”

Qatar’s foreign ministry said the truce was “an initial step toward de-escalation” and urged Iran “to immediately cease all hostile acts and practices that undermine regional stability.”

Saudi Arabia, which, like Qatar, was targeted by Iran’s missiles and drones, said it hoped the truce would be “an opportunity to achieve a comprehensive and sustainable de-escalation, enhancing the security of the region, and that any attacks or policies that undermine the sovereignty, security and stability of the countries in the region will cease.”

In the United Arab Emirates, a prime target of Iran’s attacks in the current war, presidential adviser Anwar Gargash said in a post on X that “The UAE emerged victorious from a war we sincerely sought to avoid.”

And in Iraq, where pro-Iranian militias have targeted the Kurdish minority and have been targeted by US airstrikes, the foreign ministry said on X that the truce was a “positive step” that should be followed by “serious and sustainable dialogue tracks that address the root causes of the disputes and strengthen mutual trust.”

The president of Iraq’s autonomous Kurdistan region also said: “I hope all parties will uphold this commitment in good faith and work towards a lasting peace that promotes stability, security, and prosperity throughout the entire region.”

Stocks post gains as oil prices plunge

The news pushed down crude prices, with West Texas Intermediate losing almost 20 percent and Brent as much as 16 percent as investors heaved a huge sigh of relief after more than five weeks of war that has hammered supplies.

The euphoria sent global equities rocketing on hopes that the crisis that has shocked the global economy for more than a month would come to an end.

Seoul jumped 6.9 percent and Tokyo 5.4% while Taipei added more than 4% and Mumbai 3.8%.

Hong Kong advanced more than 3%, while Sydney, Shanghai, Bangkok, Manila, Jakarta, Singapore and Wellington were also sharply higher.

Middle East stocks also rallied, with Dubai jumping 8.5%, the biggest intraday increase since December 2014, according to Bloomberg.

Stocks in Abu Dhabi climbed more than 3%, which was the largest gain since March of the same year.

European stock markets soared at the start of trading as well, with investor relief sending the Frankfurt index surging five percent.

Paris rallies 3.5% and London jumps 3% in initial deals, with airlines among the biggest gainers as oil prices plunged.

The ceasefire also led to a sharp drop in the dollar, which had become the safe-haven while the war raged, with the yen, euro and pound all strengthening.