Fear index declines following Israel-Iran ceasefire optimism
VIX down 8.7% as of 1430GMT after ceasefire announced between Israel, Iran
ISTANBUL
The VIX volatility index, also known as the "fear index," dropped 8.72% Tuesday after US President Donald Trump announced a ceasefire between Israel and Iran.
The truce was initially announced by the Trump, who said it would involve a phased halt to operations, with Iran beginning the ceasefire first and Israel following 12 hours later. A full end to hostilities would then be declared at the 24th hour, he said.
The VIX index had previously eased from historical highs following the easing of trade tensions caused by the US' tariff policy.
The index saw record levels in April, topping 52. It stood at 18.10 as of 1430GMT Tuesday.
Meanwhile, Iranian Foreign Minister Abbas Araghchi said that there was no agreement on a ceasefire or cessation of military operations, but that if the Israeli regime stops its illegal aggression against the Iranian people, they have no intention of continuing their response.
While there has been no official statement from the Iranian side, US President Trump announced that the ceasefire between Iran and Israel has come into effect and asked that it not be violated.
Following the news flow, global risk appetite increased, while the ceasefire rally stood out in equity markets.
The barrel price of Brent oil decreased 8.5% Monday to $69.5, while today it fell by 3.8% to $66.7 as of 1430GMT.
Meanwhile, the ounce price of gold, which decreased by around 2% today, saw the lowest level of 2 weeks with $3,295.6.
