The Santiago Stock Exchange (IPSA) rallied on Wednesday, closing at 10,857.30 points—a 3.22% increase—after a brief two-week ceasefire agreement between the United States and Iran eased fears over the closure of the Strait of Hormuz. The index had opened above 10,800 points and peaked at 10,923.10 during morning trading, recovering from Tuesday's close of 10,518.40.
Market gains were led by Latam, which surged 8.32%, followed by SQM-B at 4.22%, Cencosud at 3.25%, and Falabella at 2.47%. The relief rally followed an announcement from President Donald Trump late Tuesday, just before an ultimatum deadline, that he had secured a two-week pause in hostilities with Tehran. According to El Mostrador, this diplomatic breakthrough was achieved primarily through the mediation of Pakistan, with Israel also agreeing to the truce.
However, the optimism proved fragile. By Wednesday afternoon, reports from Iranian media claimed transit through the Strait of Hormuz had been halted again in retaliation for ongoing Israeli military strikes in Lebanon. The White House dismissed these reports as "falsas," or false, and argued that Lebanon is not covered by the existing ceasefire terms. Officials maintained that the truce remains valid provided the strategic strait remains open.
Commodity markets reacted sharply to the initial news of the ceasefire. The price of WTI crude oil plummeted more than 18%, dropping from a Tuesday close of $112.95 to trade near $94.14 by early Wednesday afternoon. Brent crude followed a similar trajectory, falling nearly $20 to trade at $94.40 per barrel. These prices return the market to levels last seen on March 26, the day fuel prices in Chile saw significant spikes.
Foreign exchange markets also experienced volatility. The U.S. dollar in Chile opened with a sharp drop of nearly $30, touching $888.19 in early trading. As the afternoon progressed and reports of renewed fighting surfaced, the currency recovered slightly to close at $897.22. This brings the exchange rate back to levels observed on March 11.
U.S. Senate moves to check executive war powers
While markets focused on the temporary calm in the Gulf, political pressure mounted in Washington. Democratic Senate Leader Chuck Schumer announced on Wednesday that lawmakers will attempt next week to pass a resolution limiting President Trump’s war powers regarding Iran. The move follows Trump’s previous threat that “toda una civilización morirá esta noche,” or "an entire civilization will die tonight," if the strait remained closed.
Schumer condemned the president’s rhetoric as “desquiciadas,” or "deranged," during a press conference in New York. He argued that the current conflict has failed to weaken the Iranian regime or halt its nuclear program, instead resulting in global fuel price inflation. "El Congreso debe reafirmar su autoridad, especialmente en este momento peligroso,” Schumer stated.
Internal opposition to the administration's stance is also emerging from within Trump's own political base. El Mostrador reported that Tucker Carlson, a prominent figure in the MAGA movement, publicly challenged the president, urging White House and military officials to refuse orders to attack Iran, arguing against the justification of "liberating" the country through military force.