Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, accused the U.S. of violating the two-week ceasefire agreement by allowing continued Israeli attacks on Lebanon, a drone entering Iranian airspace, and denying Iran's right to enrich uranium. The U.S. denies these claims, asserting the ceasefire remains in effect. Global markets reacted with mixed movements, as oil prices rose and Asian stocks declined amid uncertainty over the truce's stability.
Market Reactions
European stocks opened mixed on Thursday, with the U.K.'s FTSE 100 up 0.4%, while France's CAC 40 and Germany's DAX were set to open lower. Asian markets also traded lower, with South Korea's Kospi down 1.53% and Japan's Nikkei 225 falling 0.77%. Oil prices rose to above $97 a barrel, reversing earlier declines following the ceasefire announcement.
Ceasefire Disputes
Ghalibaf claimed the U.S. violated three terms of the ceasefire, including Israel's continued strikes on Lebanon and the denial of Iran's uranium enrichment rights. The White House disputed these claims, stating that halting Israeli strikes was not part of the agreement. U.S. Vice President JD Vance described the ceasefire as "messy" but insisted progress was being made. Iran also closed the Strait of Hormuz, though the U.S. claimed the strait remained open.
Geopolitical Implications
The ceasefire was contingent on Iran reopening the Strait of Hormuz, a vital oil route. Iran's Foreign Minister stated the country would stop "defensive" operations if attacks ceased. However, tensions persisted, with reports of explosions on Iranian islands and attacks on U.S. allies in the Persian Gulf. The U.S. warned of a larger military response if Iran breached the agreement.
Economic Impact
The uncertainty over the ceasefire led to volatility in global markets. Oil prices fluctuated, initially dropping on ceasefire optimism before rising again. Asian stocks declined, reflecting investor skepticism. European markets showed mixed reactions, with some sectors, like airlines, experiencing gains the previous day.