Brent crude, the international benchmark, tumbled more than 13%, settling in the mid-$90 per barrel range after surging above $115 earlier amid fears of prolonged Middle East supply disruptions. US benchmark crude dropped over 14%, retreating below $100 a barrel.

The sharp correction in oil prices was hailed by markets globally, easing inflationary pressures and sparking a risk-on sentiment across equities. In India, the Sensex surged over 2,500 points, while the Nifty jumped more than 750 points at the opening bell. In Asia, Japan's Nikkei 225 rallied 4.8%, and South Korea's Kospi soared 5.6%. Wall Street futures also climbed, with the S&P 500 up over 2%, signaling optimism ahead of the opening session.

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The reversal in oil markets comes after weeks of extreme volatility, with prices peaking above $117 per barrel at the height of conflict fears. Traders had been concerned that a disruption in Gulf oil supplies could intensify global inflation, already felt in places like the US, where gasoline prices jumped past $4 per gallon.

Analysts say the ceasefire and the temporary reopening of the Strait of Hormuz have restored immediate confidence in oil supply continuity.

Treasury yields also showed signs of easing, with the 10-year yield dipping to around 4.24%, reflecting broader market optimism. However, borrowing costs remain elevated compared to pre-conflict levels, highlighting persistent economic caution amid ongoing uncertainties in trade, technology, and global growth.