Tension quickly dissipated earlier today after the Iranian regime decided to restrain from escalating tensions and instead retaliated by “symbolically” striking a US base in Qatar.
The US administration and more specifically President Trump, branded the response from Iran as “weak” and quickly proclaimed the end of the war between the two mortal enemies and the start of the “total ceasefire”.
In a post at truth social platform the US president congratulated both nations for reaching a ceasefire agreement and branded with confidence the end of the conflict as the “12-day war”.
Analysts and market participants however, remain on edge awaiting for both nations to honor the ceasefire, taking the announcement with a grain of salt.
Evidently, post the announcement we have heard from the Israeli side that air defenses in Tel Aviv being activated from incoming missiles, condemning Iran for breaching the agreement, yet Iran dismissing allegations and not taking responsibility for the event, complicating matters further.
Crude oil futures fell sharply post the declaration of the cessation of the conflict, erasing more than 15% of the prior session’s advance and are now currently gyrating around the $66 per barrel area, since fears for the disruption of oil flows from the Strait of Hormuz did not materialize.
Gold future also reversed course and slipped by over 1% in today’s session, reflecting investors’ assessment that the war has ended for the time being.
Technical Analysis
Gold Chart – Gold slips after Trump announces ceasefire deal dampening demand for safe haven assets
Resistance: 3420 (R1), 3500 (R2), 3600 (R3)
Support: 3300 (S1), 3210 (S2), 3140 (S3)