Ryanair leads Iseq as oil prices slide and global stocks soar on Gulf ceasefire

European shares jumped on Wednesday morning as a two-week Middle East ceasefire sparked a relief rally across global markets, raising hopes that oil and gas flows through the Strait of Hormuz could soon resume.

Ryanair soared over 9 per cent in early trading in Dublin to lead shares on the Iseq All-Share index, which advanced almost 5 per cent. The pan-European Stoxx 600 index was up 3.6 per cent, and poised for its best session in a year, if current momentum persists.

Oil fell the most in almost six years on the ceasefire proposal — announced just hours before a deadline by US president Donald Trump to escalate bombing of Iran — is reviving risk sentiment after turmoil that drove stocks lower and pushed several gauges into correction territory since the war in the Gulf began six weeks ago.

Global benchmark Brent crude slid 13 per cent to $94.50 per barrel.

For the relief rally to hold across financial markets, traders will need confirmation that the ceasefire will last and energy flows through the Strait of Hormuz normalise, analysts said.

About a fifth of the world’s crude and jet fuel supplies were passing through this critical shipping lane before it was closed by Iran in response to the US-Israel attacks in late February.

MSCI’s Asia Pacific equity index jumped 4.9 per cent to a three-week high as traders bet lower oil prices will help contain inflation and revive economic growth.

Stock-index futures for Wall Street gauges rose more than 2.5 per cent. US bonds, or treasuries, rallied as easing price pressures encouraged traders to revive bets on Federal Reserve interest-rate cuts.

“For the time being, this is a relief for markets — things have calmed down,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management in Tokyo. “But things are not guaranteed to go smoothly from here, and investors shouldn’t get ahead of themselves.”

European sectors linked to travel, ‌industrials, and banking advanced ⁠between 5 per cent and 7 per cent, as they are typically seen as prime beneficiaries of lower energy costs and falling bond yields. Meanwhile, energy sector ‌lost 4.2 per cent as crude prices tumbled.

In Dublin, banking stocks were also in demand, with AIB up 3.9 per cent, and Bank of Ireland soaring almost 5 per cent.

Trump announced the agreement hours after Pakistan, a mediator in talks, implored the US leader to back off his deadline to unleash massive devastation on Iran. The deal buys time for the two sides to reach a longer agreement to end the war, which has killed thousands of people and sparked a global energy crisis.

Trump’s decision represents a dramatic climb-down from a bellicose social media post earlier Tuesday, in which he warned “a whole civilisation will die tonight, never to be brought back again” if Iran didn’t give in.

“It’s a good result considering the alternatives, as it shows a willingness to get something done,” said Matthew Haupt, a fund manager at Wilson Asset Management in Sydney. “This is also showing promising signs that we’ve dodged the worst-case scenario.”

Some investors remained sceptical.

“The outlook depends on whether the ceasefire holds, and at the moment I have little confidence that it will,” said Neil Newman, head of strategy at Astris Advisory Japan. “So I view this as very fragile relief. I would recommend using the volatility to exit underperforming stocks and strategically build positions.”

A key test for investors will be whether oil and gas flows through the Strait of Hormuz remain uninterrupted. Safe passage through the waterway will be possible via coordination with Iran’s armed forces and with “due consideration of technical limitations,” Iranian foreign minister Abbas Araghchi said in a post on X.

Shipowners are scrambling to understand the fine print in the ceasefire, hoping to take advantage of a potential window to extract more than 800 vessels trapped in the Persian Gulf.

Elsewhere, gold jumped 2 per cent to about $4,800 an ounce as bullion — a non-yielding asset — typically benefits in a lower interest-rate scenario. Silver surged 4.5 per cent to over $76 an ounce.