TLDR
- Trump announced a ceasefire between Israel and Iran on Tuesday morning after 12 days of conflict
- Israel accused Iran of breaching the truce hours later, claiming it detected missile launches
- US stock futures jumped while oil prices fell over 3% on ceasefire news
- The conflict began after US strikes on Iranian nuclear facilities over the weekend
- Iran previously fired missiles at a US base in Qatar but gave advance warning
President Donald Trump announced a ceasefire between Israel and Iran on Tuesday morning, declaring “THE CEASEFIRE IS NOW IN EFFECT” on social media. The truce was designed to end a 12-day conflict that had rattled global markets and raised fears of regional war.
US futures rally as Trump announces Israel-Iran ceasefire 🚀
🔹 Dow $YM +0.9%
🔹 S&P 500 $ES +1%
🔹 Nasdaq $NQ +1.3%Fed Chair Powell testifies before Congress today, will he drop any rate clues? pic.twitter.com/0hfR9wUsyw
— Trader Edge (@Pro_Trader_Edge) June 24, 2025
However, within hours of the announcement, Israel accused Iran of violating the agreement. Israeli officials said they detected missile launches from Iran and instructed their military to respond with strikes against targets in Tehran.
The ceasefire came after intense diplomatic efforts involving Trump, Vice President JD Vance, and Secretary of State Marco Rubio. A senior White House official said Trump brokered the deal through direct talks with Israeli Prime Minister Benjamin Netanyahu on Monday.
Israeli officials agreed to the truce as long as Iran did not launch further attacks. The Iranian government reportedly signaled it would follow those terms, though Tehran has not publicly confirmed its agreement to the ceasefire.
Market Response to Peace Hopes
Stock markets responded positively to the ceasefire news before Israel’s breach allegations emerged. Dow Jones futures rose 0.7%, while S&P 500 futures climbed 0.8% and Nasdaq 100 futures led gains with a 1% increase.
Oil prices moved in the opposite direction, falling sharply on reduced supply concerns. Brent crude dropped more than 3% to around $69 per barrel, returning to levels seen before the conflict began on June 13.
The relief rally reflected investor hopes that the truce could prevent further escalation. Markets had been concerned about potential disruption to oil supplies through the Strait of Hormuz, a key shipping route that Iran could theoretically block.
The conflict escalated significantly over the weekend when the US directly entered by bombing Iranian nuclear facilities at Fordow, Natanz and Isfahan. Trump claimed these strikes “completely and totally obliterated” the sites, though the full extent of damage remains unclear.
Iran responded by firing missiles at the Al Udeid base in Qatar, which hosts US Central Command headquarters. The Islamic Republic gave advance warning of the attack, allowing the base to be evacuated with no casualties reported.
Qatar said it intercepted the Iranian missile barrage. US officials described Iran’s response as largely symbolic, noting that the number of missiles fired matched the number of bombs the US had used against the nuclear sites.
Trump called Iran’s Qatar strike “weak” and thanked Tehran for giving early notice. He suggested Iran had “gotten it out of their system” with the limited retaliation.
The president expressed confidence that the ceasefire would hold long-term. He predicted the agreement would be “unlimited” and last “forever,” saying he believed Israel and Iran would never fight again.
Vice President Vance told Fox News that the weekend bombing had achieved its objectives. He claimed Iran could no longer build nuclear weapons and that their enriched uranium stockpile had been “buried” in the attacks.
International monitors have said they don’t know the current location of Iran’s enriched uranium after Tehran moved the material earlier this month. The fate of this stockpile remains one of many unresolved questions following the conflict.
Israel’s defense minister has now ordered powerful strikes against Iranian regime targets in response to the alleged ceasefire violation, though Iran has denied launching any new attacks.
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