BlogHear.com – June 26, 2025 — Investors around the world appear cautiously optimistic following U.S. President Donald Trump’s announcement of a Middle East truce, even as recent Iranian rocket fire and Israeli warnings keep some tension alive. Nearly 24 hours after the ceasefire declaration, markets have mostly held firm, signaling hopes that the worst of the conflict may be behind them.
Global stocks rallied in the immediate aftermath of the announcement but have since plateaued, while crude oil prices have found a stable floor after weeks of volatility. The security of Iran’s critical oil infrastructure and the strategically important Strait of Hormuz remained largely intact throughout the heightened hostilities, alleviating fears of a major supply disruption.
Despite President Trump’s upbeat remarks on social media — including a controversial statement that China can now resume purchasing Iranian oil, which the White House quickly clarified did not signal a change in sanctions policy — uncertainties remain. Conflicting reports from the U.S. Defense Intelligence Agency suggest that weekend strikes on Iran’s nuclear facilities set back the program only marginally, contrary to Trump’s claim that Iran’s nuclear capabilities had been “obliterated.”
As Trump travels to The Hague to attend a NATO summit where defense spending will be a key topic, markets remain attentive to further developments in the Middle East. The conflict and its implications are expected to dominate trading activity throughout the European session, with little major corporate or macroeconomic data scheduled for release.
In the United States, economic news is limited to new home sales data, while Federal Reserve Chair Jerome Powell resumes his Senate testimony following his recent appearance before the House. Market watchers do not anticipate significant new insights from his testimony.
Political shifts in the U.S. also attracted attention. Zohran Mamdani, a 33-year-old state legislator and self-described democratic socialist, appeared poised to claim a surprising victory over former New York Governor Andrew Cuomo in the Democratic primary for New York City mayor, signaling a potential shift in the city’s political landscape.
Tuesday’s trading session marked the second consecutive day of gains for U.S. equities, with the S&P 500 closing near its all-time high last reached in February, buoyed by optimism over the reduced geopolitical risk.
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