During the early hours of Wednesday, a bulk cargo ship sailing under the Greek flag became the first vessel to cross the Strait of Hormuz following the ceasefire agreed upon between Iran and the United States, as part of the two-week truce established on Tuesday. The reopening of the route and the agreement have only fueled optimism among investors for a potential lasting peace between the warring parties, despite warnings of a fragile pause and Iranian threats of attacks on any unauthorized ship crossing the crucial passage that connects the Gulf of Oman with the Persian Gulf. The news broadly boosted global stock markets, which, around 2:00 PM Chile time, were rising sharply and nearing recovery of all the levels lost during the year and the onset of the conflict, while Brent oil plummeted more than 13% to $94 per barrel, and the dollar collapsed in the local market.

In an interview with DF, Francisco Rosa, investment advisor at Julius Baer Chile, pointed out that the ceasefire provides tailwinds to the market but expects a volatile environment amid intense negotiations. He also anticipates that oil prices could remain high if the parties interrupt or do not respect the agreement. - How do you view the ceasefire?

- We believe it is a positive signal that should help reduce uncertainty in the markets. We need to stay very alert to how the conversations between Iran and the U. S.

progress, and it is possible that volatility remains high until a definitive agreement is reached. - Will they be able to reach an agreement? - We believe both parties are looking to close the conflict, but the negotiation process will be intense.

Given this, we do not rule out that volatility may remain high until a final agreement is achieved. - What should we ob…

The market's reaction in the coming days will continue to be shaped by geopolitical events, and if negotiations do not progress, we may see a new rise in volatility globally. Greenback and oil - What should happen to the dollar globally? - We believe that in the medium and long term, the dollar should depreciate against the major world currencies, but it is important to note that the dollar remains a safe-haven asset, so in the event of escalating tensions, we could see a strong dollar again.

- Do you see it possible for oil prices to return to pre-war levels in the short term? - We believe that in the medium and long term, oil prices will continue to decline as the conflict decreases in intensity and the opening of the Strait of Hormuz is secured. In the short term, prices may remain high, especially if negotiations do not progress or the ceasefire is not respected.

- If an agreement is reached, what investment strategies do you recommend to your clients? - The main thing is to have an appropriate investment strategy, which is based on portfolio diversification. We believe there are interesting opportunities both in fixed income, where yields increased in March, and in equities, where high-quality companies have been dragged down by the conflict to prices that look attractive as a potential entry point.