A preliminary US-Iran agreement to reopen the Strait of Hormuz sparks a surge in equities and a drop in oil prices amid easing supply concerns.
Global stocks climbed and oil prices fell after the US and Iran reached a preliminary deal to reopen the Strait of Hormuz, easing a three-month disruption that had tightened energy supplies. The memorandum of understanding, announced late Sunday, includes a 60-day ceasefire but defers key issues like Iran’s nuclear program to future talks.
The Strait of Hormuz, a critical chokepoint for global oil shipments, has seen near-total blockades since March, driving volatility in energy markets. While US President Donald Trump declared the strait would reopen toll-free, details on restoring full traffic and production remain unclear.
Markets reacted swiftly, with equities rallying on optimism over supply normalization, though analysts caution the deal’s fragility could limit sustained gains.