Tentative Deal on Ending the Iran War Sends Stocks Soaring While Oil Prices Fall
Asian shares jumped as oil sank more than 4%, with traders betting the Strait of Hormuz deal will ease inflation pressure and support risk assets.
- 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.
369 Articles
369 Articles
Brazilian stocks slip as the US-Iran deal sinks oil prices and hits Petrobras
São Paulo's stock exchange closed on Monday down 0.42%, dragged by the plunge of the state oil company Petrobras after the international crude price fell, linked to the preliminary agreement between the United States and Iran. The Ibovespa, the benchmark index of Latin America's main exchange, ended the session at 170,415 points.
The news of an agreement in conflict with Iran is euphorically received on Wall Street. Oil prices fall to the lowest level since March. This drives not only the shares of airlines and cruise operators, but also interest-sensitive technology values.
British Pound rises as US-Iran accord sends Oil plunging
The Pound Sterling (GBP) advances by 0.31% on Monday as risk appetite improves following an agreement reached between the US and Iran, which is expected to be signed on Friday in Geneva, Switzerland. Both parties announced the deal, a headwind for the US Dollar (USD), which has fared well amid geopolitical uncertainty and inflationary scenarios. At the time of writing, the GBP/USD pair trades at 1.3436. GBP/USD gains as peace breakthrough pressu…
Oil plunges, stocks jump on US-Iran peace deal
Oil prices dropped towards $80 a barrel, and stocks rallied on Monday after Washington and Iran reached a framework deal to end the Middle East war and reopen the Strait of Hormuz, sending a wave of relief through global markets.The strait, through which roughly 20 per cent of the world's crude oil supply normally transits,...
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