Oil plunges on ceasefire optimism, risk currencies gain broadly

Crude oil prices have collapsed following ceasefire announcements, with WTI futures dropping over 5% as Middle East tensions ease significantly. The energy market selloff is driving broad risk-on sentiment across global markets, benefiting commodity currencies and pressuring safe-haven assets. Currency markets are responding with sharp moves: commodity-linked currencies like CAD and AUD are strengthening, while traditional safe havens USD and JPY face selling pressure. The dramatic shift in oil prices reduces inflation expectations globally, giving central banks more room to maintain accommodative policies. Asian equity markets led the rally, with the DAX and other European indices following suit. For forex traders, the combination of lower energy costs and reduced geopolitical risk is creating opportunities in carry trades and commodity currency pairs. Technical levels are being tested across multiple pairs as the market reprices for a lower-risk environment.