US Stock Futures Rise as Trump Extends Iran Ceasefire

In Singapore, financial markets showed resilience on Wednesday as U.S. stock futures climbed following an announcement from the United States regarding Middle East diplomacy. President Donald Trump stated he would indefinitely extend a ceasefire with Iran, a move that bolstered investor sentiment despite ongoing tensions in the region. While the ceasefire extension was presented as a unilateral decision, it remains uncertain if Tehran or Israel will formally commit to the prolonged truce. Nevertheless, S&P 500 futures rose by 0.5% and Nasdaq futures gained 0.6% during early Asian trading hours. In Japan, the Nikkei index slipped 0.2% as investors locked in recent profits, while the broader MSCI Asia-Pacific index outside Japan eased 0.14%. Market analysts suggest that the initial shock of the conflict has largely dissipated. Matt Simpson, a senior market analyst at StoneX, noted the shift in investor perception. > It appears markets were right to assume peak war uncertainty is behind us. Energy markets remain sensitive to the situation as the Strait of Hormuz remains closed, impacting roughly one-fifth of the world's energy supply. West Texas Oil futures increased by 0.44% to reach $90.12 per barrel, maintaining the momentum from a nearly 3% gain in the previous session. The U.S. Navy continues its blockade of Iranian ports and shorelines, sustaining pressure on global supply chains as Tehran maintains its closure of the vital shipping lane. In the currency markets, the dollar experienced some volatility. The EUR/USD pair was trading at $1.1748, while the USD/JPY exchange rate saw the yen strengthen slightly to 159.26. Meanwhile, the GBP/USD pair rose to $1.35195 as the British pound found support amid the broader risk-on environment.