The U.S. President announced yesterday evening that he has unilaterally extended the ceasefire in Iran, without specifying a new deadline, explaining that he preferred to wait for the Islamic regime to formulate new proposals.

This announcement comes just hours before the expiration of the previous deadline set by the White House to seal a deal, which was scheduled to lapse tonight, Washington time.

Earlier, Vice President J.D. Vance's trip to Islamabad for a second round of negotiations with Iran was postponed, as Tehran deemed the talks a "waste of time."

A fragile truce already priced in by investors

While the extension of the truce is likely to fuel cautious optimism, Sebastian Paris Horvitz, Director of Research at La Banque Postale Asset Management, believes a shift in underlying market dynamics is unlikely in the short term, as the stakes remain exceptionally high.

"It is not only a matter of finding common ground to restore trust between the two belligerents, but also of reassuring economic players regarding a potential path toward normalizing global oil and gas supplies with the reopening of the Strait of Hormuz," the strategist noted.

Following a rally lasting more than three weeks, equity markets have tended to catch their breath in recent days as the diplomatic route remains deadlocked.

Furthermore, some analysts consider Donald Trump's decision to extend the ceasefire as no surprise in itself, suggesting that the bulk of the news had already been priced into valuations.

Asia reacts favorably, Wall Street seeks a second wind

This apparent lull nonetheless supported Asian markets. On the Tokyo Stock Exchange, the Nikkei traded on a positive note (+0.2%) on Wednesday, while the CSI 300, which tracks the largest caps in mainland China, gained 0.4%.

With the relief over Iran, oil prices are trending slightly lower, extending a decline that began about ten days ago. Brent crude fell 0.6% to below 97.9 dollars per barrel, while U.S. light crude (West Texas Intermediate, WTI) lost more than 1% to 88.7 dollars.

On Wall Street, futures point to gains of between 0.5% and 0.7% at Wednesday's open, following a lower session the previous day.

The New York Stock Exchange ended in the red on Tuesday evening, with average declines of around 0.6% for the Dow Jones, the S&P 500, and the Nasdaq.

Analysts point to a technical consolidation driven by a structural adjustment to an overly vigorous U.S. economy. With consumption remaining robust, investors now fear a prolonged period of restrictive Fed policy, especially as firm oil prices revive inflationary risks.

Donald Trump's decision to push back his ultimatum to Iran is not benefiting the dollar, which has been stripped of some of its safe-haven appeal. The greenback shed approximately 0.1% against the euro, which rose back toward 1.1750 dollars.

U.S. yields showed little movement, with the 10-year Treasury note remaining stable around 4.29%.