The ceasefire triggered immediate relief across global financial markets. India’s benchmark Sensex index surged nearly 4%, jumping 2,946 points to settle at 77,562.90, driven by falling crude oil prices. European bond markets saw significant movement as well, with Germany’s 10-year bond yield dropping below the psychologically significant 3% mark — a shift that analysts say reflects deeper changes in expectations around European Central Bank policy.
Yet governments are tempering euphoria. Germany’s federal government cautioned consumers not to expect immediate relief at the pump, urging patience despite the ceasefire and the anticipated reopening of Hormuz. The European Central Bank may now face a recalibration of its interest rate trajectory, as the pre-ceasefire period had been marked by sharp energy-driven inflation and aggressive rate expectations.