JP Morgan’s country risk index fell on Monday, June 15, to 425 basis points, its lowest level since April 2018. The drop followed the announcement of a preliminary agreement between the United States and Iran to reopen the Strait of Hormuz.
On the national holiday marking General Martín Miguel de Güemes, Argentine sovereign bonds in New York rose an average of 1 percent. The country risk index opened at 437 points and closed at 425, a daily decline of 2.74 percent.
President Donald Trump announced on social media the authorization for the “toll-free opening” of the Strait of Hormuz, with formal signing scheduled for Friday, June 19, in Switzerland. Iran’s Fars agency reported that transits will be exempt from charges for 60 days.
Economy Minister Luis Caputo welcomed the news on X and reiterated that Argentina will wait for a lower risk premium before returning to voluntary debt markets. “When the macroeconomy is in order, the passage of time works in our favor,” he wrote.
On Wall Street, the S&P 500 rose 1.9 percent and the Nasdaq 100 gained 3.1 percent, while West Texas Intermediate crude fell 5.5 percent to 80.23 dollars per barrel.
