Stocks soar as US and Iran reach deal to open Strait of Hormuz, end the war
The details of the framework for peace are not yet available.
Oil prices are falling and stock futures are up after the United States and Iran said they reached an interim agreement to reopen the Strait of Hormuz.
President Trump announced the deal on Truth Social on Sunday evening, saying toll-free access to the strait would resume and the US’s naval blockade would be lifted. This comes after both sides exchanged attacks last week, escalating tensions to some of the highest levels since the US and Israel struck Iran in late February.
“Ships of the World, start your engines,” Trump wrote on his social media platform. “Let the oil flow!”
The full details of the agreement have yet to be released. Trump told The New York Times that the US would resume strikes if Iran failed to reach a nuclear accord.
Shehbaz Sharif, prime minister of Pakistan, where the negotiations took place, said in an X post that the agreement would be signed on Friday at the G7 Summit in Switzerland.
Front-month Brent crude oil futures fell as much as 5%, taking prices down to ~$83 per barrel, the lowest since early March. Before the effective blockade, around a fifth of all oil supply in the global markets flowed through the Strait of Hormuz. Travel stocks — such as Delta Air Lines, United Airlines, and Royal Caribbean — were all trading higher before the bell, as were a host of AI, tech, and high-beta names.
Futures for the S&P 500 and Nasdaq Composite rose 1.24% and 2%, respectively. Last week, inflation readings for May showed both wholesale inflation and consumer prices rose in large part because of higher energy costs.
