BANGKOK — Stocks rallied and oil prices fell on Tuesday after U.S. President Donald Trump announced what appears to be a shaky ceasefire in the Israel-Iran war.
The tentative truce proposed by Trump remained uncertain after Israel said Iran had launched missiles into its airspace less than three hours after the ceasefire went into effect. It vowed to retaliate.
Still, investors took heart after Trump said Israel and Iran had agreed to a ''complete and total ceasefire'' soon after Iran launched limited missile attacks Monday on a U.S. military base in Qatar, retaliating for the American bombing of its nuclear sites over the weekend.
The future for the S&P 500 gained 1% while that for the Dow Jones Industrial Average was up 0.8%.
''The Middle East may still be smoldering, but as far as markets are concerned, the fire alarm has been shut off,'' Stephen Innes of SPI Asset Management said in a commentary.
In early European trading, Germany's DAX leaped 2.2% to 23,780.32, while the CAC 40 in Paris added 1.4% to 7,645.58. Britain's FTSE 100 was up 0.4% at 8,793.18.
In Asia, Tokyo's Nikkei 225 rose 1.1% to 38,790.56 and the Hang Seng in Hong Kong gained 2.1% to 24,177.07.
The Shanghai Composite index climbed 1.2% to 3,420.57.