April 8, 2026

The United States and Iran agree to a two-week ceasefire

International

Yesterday, after the market closed, news broke that the United States and Iran had agreed to a two-week ceasefire, contingent on Iran’s commitment to reopen the Strait of Hormuz. The agreement, brokered by Pakistan, could pave the way for future peace negotiations, based on an Iranian proposal outlining 10 points to be addressed. Oil prices, for both WTI and Brent, have fallen by about 15% since the news broke.

Major U.S. stock indices closed mixed on Tuesday, though they are advancing strongly in today’s pre-market trading. The S&P 500 closed up 0.1%, as did the Nasdaq, while the Dow Jones fell 0.2%. Thus, so far in 2026, the indices have accumulated changes of -3.3%, -5.3%, and -3.1%, respectively.

Meanwhile, the U.S. Treasury yield curve flattened yesterday. The yield on the 1-year bond fell from 3.69% to 3.63%, while the 3-year bond yield fell from 3.87% to 3.82%. For the 10-year bond, the yield fell from 4.33% to 4.30%.

80%