Markets rally on Iran ceasefire, but fragility emerges quickly. The Dow jumped 1,300 points Wednesday, its best day since April 2025, as a temporary U.S.-Iran truce sparked optimism across global markets. Oil prices posted their biggest single-day drop since 2020 on expectations that the Strait of Hormuz would reopen to normal shipping traffic. However, the ceasefire's foundation appears shaky. Iran's parliamentary speaker accused the U.S. of violating three key provisions within 24 hours, including continued Israeli attacks in Lebanon and uranium enrichment restrictions. Vice President JD Vance acknowledged tensions, calling the ceasefire a "fragile truce" and noting Trump is "impatient to make progress." The agreement hinges on unrestricted shipping through the critical Strait of Hormuz, which handles vital global energy supplies.
