US President Donald Trump said Washington has agreed to a two-week pause in attacks and has received a 10-point proposal from Iran, which he described as a workable basis for negotiations. His comments provided much-needed relief to markets after earlier warnings that Tehran must reopen the Strait of Hormuz or face severe consequences.
“This will be a double-sided CEASEFIRE!” he wrote on Truth Social. “The reason for doing so is that we have already met and exceeded all military objectives, and are very far along with a definitive agreement concerning long-term peace with Iran, and peace in the Middle East,” he added.
Iran agreed to allow safe passage through the Strait of Hormuz for two weeks. Its foreign minister shared a statement on behalf of the Supreme National Security Council, thanking Pakistan’s leadership for brokering the talks.
Pakistan, which has been mediating between the US and Iran, requested the two-week pause to allow diplomacy to proceed. Iran’s Supreme National Security Council said negotiations with the United States would begin on April 10 in Islamabad after submitting its proposal via Pakistan, though it added that the talks do not signal an end to the war.
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The temporary halt in hostilities and Iran’s decision to reopen the Strait of Hormuz provided much-needed relief to the recent surge in oil prices. Brent crude futures dropped more than 13% to $94.98 per barrel, while WTI crude fell over 15% to $95.95 per barrel as of 9 am IST on Wednesday.
Oil prices had crossed the $100 mark in March following the closure of the Strait of Hormuz—the first time since Russia’s invasion of Ukraine in 2022—and had largely remained above that level since.Paint and tyre companies use crude oil as a key raw material. The earlier surge in oil prices had raised concerns about margin pressures, triggering a selloff in these stocks. However, the latest decline in oil prices has boosted investor sentiment.
Asian Paints shares rose nearly 7% to Rs 2,336.9 apiece, while Indigo Paints surged 9%. Berger Paints gained around 5%. MRF, India’s most expensive stock, rose 6%, while Apollo Tyres and CEAT also advanced more than 6%.
What lies ahead?
The ceasefire announcement provides a much-needed breather for global markets by dialling down the immediate risk of disruption in the Strait of Hormuz—arguably the world’s most critical energy chokepoint, said Harshal Dasani, Business Head at INVasset PMS.
“With nearly 20 million barrels per day, or about 20% of global oil flows, passing through this route, even a temporary easing of tensions can significantly reduce the geopolitical premium embedded in crude prices. The sharp pullback in oil following the announcement reflects this recalibration,” he added.
For India, the implications are particularly significant, given that over 40% of its crude imports come from the Middle East. Any stabilisation in shipping lanes and freight costs directly eases imported inflation pressures, supports the rupee, and enhances earnings visibility for oil-sensitive sectors such as aviation, paints, logistics, and oil marketing companies.
“That said, the development should be viewed as a temporary reprieve rather than a lasting solution. The ceasefire is limited in duration, safe passage remains conditional, and negotiations are still evolving. Market stability in the medium term will depend on whether this pause translates into a sustained and credible de-escalation,” he concluded.