- U.S. and Iran finalize peace deal, with Switzerland signing set for June 19.
- Stock futures rise while oil prices fall on expectations of Hormuz reopening.
- Trump said he authorized the toll-free reopening of the Strait of Hormuz.
Global markets rallied, and oil prices fell sharply after the United States, Iran, and Pakistan confirmed that Washington and Tehran had finalized a peace agreement, ending months of uncertainty around one of the world’s most important energy corridors.
The deal, which is expected to be formally signed later this week, boosted investor sentiment as traders increasingly expect the Strait of Hormuz could soon reopen to normal shipping traffic.
Markets Respond to Peace Deal Announcement
U.S. stock index futures advanced during Sunday evening trading after details of the agreement emerged. Futures linked to the S&P 500 rose approximately 0.8%, while Nasdaq 100 futures gained about 1.3%. Dow Jones futures climbed 0.6%.
Risk-sensitive assets recorded some of the strongest gains, signaling positive market sentiment following confirmation that negotiations had concluded. At the same time, energy markets moved in the opposite direction. West Texas Intermediate crude oil fell roughly 5%, while Brent crude declined around 4%.
Leaders Confirm Agreement Details
U.S. President Donald Trump announced that an agreement with Iran had been completed. In a statement posted on Truth Social, Trump said the deal with the Islamic Republic of Iran was finalized and indicated that the Strait of Hormuz would reopen after the agreement is formally signed.
He also stated that he had authorized what he described as the toll-free reopening of the strategic waterway and the removal of the U.S. blockade of Iranian ports. According to Trump, the arrangement would allow oil shipments to resume through the region.
Iranian Deputy Foreign Minister Kazem Gharibabadi separately confirmed on state television that a memorandum of understanding between Tehran and Washington had been finalized. He said an official signing ceremony would take place in Switzerland on June 19.
Gharibabadi also stated that an immediate and permanent end to military operations across multiple fronts, including Lebanon, would be announced.
Pakistan’s Role in Mediation
Pakistan, which helped facilitate negotiations between the two countries, also confirmed the upcoming signing ceremony. Prime Minister Shehbaz Sharif said on X that representatives are expected to meet in Switzerland on Friday to formally sign the agreement.
The planned ceremony is expected to mark the final step in the process outlined by officials from all three countries, following a series of diplomatic efforts to end the conflict and restore regional stability.
Related: Global Stocks Rise, Oil Prices Drop as U.S.-Iran Deal Hopes Ease Inflation Fears
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