Category: Finance

Stocks closed significantly higher on Wednesday, just hours after the U.S. and Iran announced a two-week ceasefire.

The Dow Jones Industrial average surged 1,325 points, or 2.8%, while the S&P 500 climbed 2.5%. The tech-heavy Nasdaq jumped 2.8%.

As part of the accord, Iran says it will allow tankers passage through the Strait of Hormuz, a vital shipping route for oil and gas, as long as they coordinate with the nation’s military.

Investors appeared optimistic that the agreement would ease one of the worst global oil shortages in decades, though the resumption of tanker traffic in the strait remained uncertain.

U.S. oil prices plummeted nearly 15% on Wednesday, registering at about $96 a barrel. Still, the price of oil remained well above pre-war levels of about $67 a barrel.

President Donald Trump touted the ceasefire in a social media post on Wednesday, saying there would be “no enrichment of Uranium,” despite the Iranians claiming that the U.S. agreed to its plan, which includes numerous concessions.

Only about a dozen ships passed through the Strait of Hormuz in the first two days of the ceasefire agreement between the United States and Iran, far below the normal traffic level before the war, marine transit data shows.

As part of the agreement, which President Trump announced late Tuesday, Iran would allow vessels to cross through the channel, which is a crucial waterway for shipping about 20% of the world’s oil supply.

But early Wednesday, an Iranian news agency linked to the country’s military reported that traffic through the strait would be suspended in response to Israel’s attacks on Hezbollah in Lebanon. White House press secretary Karoline Leavitt disputed Iran’s claim that the Lebanon conflict was part of the ceasefire agreement. Vice President JD Vance told reporters Wednesday that there was a “legitimate misunderstanding” about the terms of the ceasefire.

“We have seen an uptick of traffic in the strait today,” Leavitt said Wednesday. “I will reiterate the president’s expectation and demand that the Strait of Hormuz is reopened immediately, quickly and safely.”

On Wednesday and Thursday, at least 12 ships passed through the waterway — just a fraction of what would have been seen before the war, data from ship tracking company, Marine Traffic, shows.

From Feb. 1 to Feb. 27, the U.N.’s Trade and Development organization said the average number of vessels passing through the strait was 129 before beginning to slow as the war began on Feb. 28.

Only three of the ships that passed through since the ceasefire began were oil or chemical tankers, all passing on Thursday. All three are under U.S. sanctions for previously shipping Iranian oil. The rest were cargo ships.

While data was not available for one of the ship’s loads, one of the tankers was carrying roughly 1 million barrels of oil, and the third vessel was not loaded.

The Philippines has declared a national energy emergency in response to the U.S.-Israeli war with Iran, marking the latest sign of strain in Asia as the Middle East conflict stifles oil delivery and threatens an energy crisis.

Philippine President Ferdinand Marcos Jr. said in part that the ongoing war threatened “the availability and stability of the country’s energy supply.”

The emergency declaration allows the Philippine government to exert control over fuel prices and fast-track imports from alternative suppliers, such as Russia. Philippine authorities say they have enough fuel to last about 45 days at typical consumption levels.

The announcement comes a day after South Korea launched a nationwide energy-saving campaign, calling on people to ride bicycles for short trips and reduce the length of showers. Japan, meanwhile, said Wednesday that it would soon begin releasing oil from its emergency reserve, equivalent to a 30-day supply. Thailand and Vietnam have also asked citizens to take steps to curtail energy use.

The effect of the Iran war on oil prices is now costing you more not just at the pump. Diesel prices are driving near-record ground-shipment surcharges due to the Iran war, including first-ever package surcharges from the United States Postal Service (USPS).

Shippers on the East Coast say they are now charging 30 to 40 cents more per mile in diesel surcharges since the start of the war, according to companies that spoke with ABC News, representing roughly a 50% to 93% jump in per-mile surcharge rates.

One company’s oil analyst called it an “off-the-charts increase,” saying that these levels have not been seen since the weeks following Russia’s invasion of Ukraine in 2022.

Shippers vary in how they apply fuel surcharges. Some, like those who spoke with ABC News, charge per mile, while others apply a percentage of total shipping costs. USPS, for example, is preparing to introduce an approximately 8% surcharge on packages for the first time in its history, which will be based on the total shipping cost, according to their surcharge announcement.

The surcharge on certain products will start April 26 and last until Jan. 17, 2027, USPS said.

“Transportation costs have been increasing, and our competitors have reacted with a number of surcharges,” USPS said in a statement on March 25 announcing the surcharges. “We have steadfastly avoided surcharges and this charge is less than one-third of what our competitors charge for fuel alone.”

Martha Johnson, a spokesperson for the USPS, disagreed that the price hike was a “fuel surcharge,” saying in a statement to ABC News that it is “the reality of overall transportation related costs (which is inclusive of fuel).”

USPS delivered approximately 6.8 billion packages in fiscal year 2025, according to their records.

Iran has mounted a near-closure of the Strait of Hormuz, a critical maritime trading route along the coast of Iran that facilitates the transport of about 20% of the global oil supply. That in turn has driven fuel costs higher globally.

The average price of a gallon of diesel as of April 1 stood at $5.46, jumping over a dollar since the beginning of March, GasBuddy data shows.

Russian drone strikes killed at least two people in the Ukrainian city of Odesa overnight into Saturday, local authorities reported, ahead of a proposed ceasefire for Orthodox Easter.

A further two people were wounded in the attack on the Black Sea port city, when drones hit a residential area, damaging apartment buildings, houses and a kindergarten.

According to the Ukrainian Air Force, Russia targeted Ukraine with 160 drones overnight, of which 133 were shot down or intercepted, hours before a proposed Easter ceasefire was due to come into force.

Russia’s Defense Ministry said 99 Ukrainian drones were shot down overnight across Russia and occupied Crimea.

Russian President Vladimir Putin on Thursday declared a 32-hour ceasefire over the Orthodox Easter weekend, ordering Russian forces to halt hostilities from 4 p.m. Saturday until the end of Sunday.

Ukrainian President Volodymyr Zelenskyy promised Saturday to abide by the ceasefire, describing it as an opportunity to build on peace initiatives. But he warned there would be a swift military response to any violations.

“Easter should be a time of silence and safety. A ceasefire (at) Easter could also become the beginning of real movement toward peace,” Zelenskyy wrote in an online post on Saturday.

But he added: “We all understand who we are dealing with. Ukraine will adhere to the ceasefire and respond strictly in kind.”

Ukraine earlier proposed to Russia a pause in attacks on each other’s energy infrastructure over the Orthodox Easter holiday.

Previous ceasefire attempts have had little impact, with both sides accusing each other of violations.

Kremlin spokesman Dmitry Peskov on Friday described Putin’s move as a “humanitarian” gesture, but said Moscow remains focused on a comprehensive settlement based on its longstanding demands – a key sticking point that has prevented the two sides from reaching an agreement.