Tentative Deal on Ending the Iran War Sends Stocks Soaring While Oil Prices Fall
Oil prices fell more than 4% as investors welcomed a deal to reopen the Strait of Hormuz, though its unsigned status kept some caution in markets.
- On Sunday, President Donald Trump announced a ceasefire deal with Iran, authorizing the reopening of the Strait of Hormuz and the immediate removal of the U.S. naval blockade on Iranian ports.
- Markets had been roiled by geopolitical risk since February, and the agreement provides relief to the global economy after nearly four months of conflict.
- The Nikkei 225 surged 4.5 percent and the Kospi jumped 5.7 percent on Monday, while international benchmark Brent crude fell $3.45 to $83.88 per barrel in early trading.
- Analyst Josh Gilbert cautioned that "the deal isn't actually signed until June 19th," with Pakistan stating the signing would be held in Switzerland.
- Broader negotiations on Iran's nuclear program are expected to continue over the next 60 days, while experts suggest oil flows must recover to around 60% of pre-war levels to restore a supply surplus.
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85 Articles
US-Iran Peace Deal Spurs Market Surge: Stocks Soar, Oil Prices Plummet
The Dow Jones Industrial Average closed at a record high on Thursday, 12 June. The S&P 500 posted its biggest single-day gain since April. Oil prices hit their lowest level since March. All of it traced back to one announcement: the United States and Iran had agreed to end their war. On Sunday, Trump declared the deal 'now complete' in a Truth Social post late Sunday. Markets responded positively on Monday morning, with futures rising sharply ah…
Stocks Rally With Bonds as Iran Deal Spurs Relief: Markets Wrap
(Bloomberg) -- Global stocks and bonds rallied while oil slumped to a three-month low after the US and Iran reached a deal to reopen the Strait of Hormuz, sparking a relief rally across markets as concerns over energy-supply disruptions eased.
According to Pakistani mediators, Iran and the US have reached an agreement and the economy reacts immediately.
Global oil prices have fallen sharply to their lowest levels since March, after political developments between the United States and Iran boosted hopes for a return to stability in global energy markets and the resumption of shipping through the Strait of Hormuz.
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