Dax poised for higher open as trump calls ceasefire with iran, oil prices plummet

Global markets are set for a volatile day as US President Donald Trump announced a two-week ceasefire with Iran, sending oil prices tumbling nearly 15%. The move comes just hours after Trump's ultimatum to Iran over the Strait of Hormuz.

Trump's ceasefire conditions

Trump claimed on social media platform Truth Social that the truce is contingent on Iran lifting its blockade of the Strait of Hormuz. The development follows a tense standoff between the US and Iran, with Trump threatening to withdraw from NATO if European allies refused to deploy vessels to reopen the key shipping route.

In related news, Trump is scheduled to host NATO Secretary General Mark Rutte at the White House on Wednesday, as the US president seeks to strengthen alliances amid rising tensions with Iran. The meeting has been planned for some time, according to NATO.

Market reactions

Stock markets in Europe remained under pressure, with the German Dax index closing down over 1% on Tuesday at 22,921.59 points. However, US markets showed resilience, with major indices like the Dow Jones and S&P 500 closing near flat. Asian markets, though, staged a strong comeback overnight, with Japan's Nikkei soaring 5.4% as investors bet on a truce.

Investors will now be eyeing the minutes from the Federal Reserve's latest policy meeting, released in mid-March, as well as key data from Germany's industrial sector and the Eurozone's producer prices and retail sales.