President Donald Trump said the United States and Iran reached a peace deal over the weekend that will be signed on June 19. The agreement calls for the reopening of the Strait of Hormuz and the removal of the U.S. naval blockade.
Markets responded quickly to the announcement. Oil prices dropped more than 4 percent, with Brent crude falling toward $83 a barrel and West Texas Intermediate near $80. Equity indexes advanced worldwide, including a 3 percent rise in the MSCI Asia-Pacific Index and a 2 percent gain in the Invesco QQQ ETF in pre-market trading.
Bitcoin climbed above $65,000, reaching as high as $65,940 before settling near $65,800, up about 2 percent over 24 hours. Ether and other major cryptocurrencies posted similar modest advances, though traders expressed caution about the durability of the truce.
Pakistani Prime Minister Shehbaz Sharif confirmed the framework, noting the immediate termination of military operations. The deal includes a 60-day extended ceasefire while final terms are completed at a signing ceremony in Switzerland.
Attention now shifts to the Federal Reserve, where Chair Kevin Warsh will hold his first policy meeting on June 17.
