Markets React Amid Iran, Israel Ceasefire
(MENAFN) The VIX volatility index, frequently referred to as the "fear index," plunged by 8.72 percent on Tuesday following US President Donald Trump's declaration of a ceasefire between Iran and Israel.
According to Trump, the truce would proceed in stages, with Iran initiating a pause in operations, followed by Israel 12 hours later.
A comprehensive cessation of conflict would then be announced 24 hours after the initial step, he explained.
Previously, the VIX had already begun to decline from record-breaking levels, as trade frictions eased following shifts in the US administration's tariff strategy.
In April, the index had soared to unprecedented heights, surpassing 52. By Tuesday at 14:30 GMT, it had dropped to 18.10.
Meanwhile, Iranian Foreign Minister Abbas Araghchi stated there was no formal deal regarding a ceasefire or suspension of military activity.
However, he added that should the Israeli regime put an end to its “illegal aggression” against the Iranian population, Iran would not feel compelled to maintain its countermeasures.
Though no official confirmation was issued by Tehran, President Trump reiterated that the ceasefire had been implemented and urged both parties not to breach it.
As developments unfolded, investor confidence grew globally, and equity markets reflected a strong rally spurred by the ceasefire announcement.
Concurrently, the price of Brent crude oil, which had already tumbled 8.5 percent on Monday to USD69.5 per barrel, saw a further decline of 3.8 percent on Tuesday, reaching USD66.7 by 14:30 GMT.
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