An impending U.S.-Iran agreement reopens the Strait of Hormuz, boosting travel and mining sectors while pressuring oil stocks.
Markets rose early Monday after the U.S. and Iran announced plans to sign an interim peace deal on Friday. Travel and mining stocks led gains on expectations the Strait of Hormuz would reopen, easing supply chain disruptions. Oil stocks, which had outperformed for three months, fell to the bottom of the S&P 500 as geopolitical risk premiums declined.
The S&P 500 advanced broadly, with energy shares lagging as crude prices retreated. Prior to the deal, oil stocks had benefited from elevated tensions in the region, driving higher profit margins. Analysts noted the shift reflected reduced risk of supply shocks.
No immediate market reaction data was provided, but the rotation from defensive to cyclical sectors suggested investor optimism about global trade stability.