U.S. stock futures jumped and oil prices fell on Sunday after the U.S. and Iran confirmed they had finally reached an agreement to extend a ceasefire that would reopen the Strait of Hormuz after weeks of futile hopes.
Futures tied to the Dow Jones Industrial Average jumped 430 points, or 0.87%. S&P 500 futures rose 1.08%, while Nasdaq futures rose 1.77%.
U.S. crude futures fell 5.1% to $80.54 a barrel, while Brent crude fell 4.3% to $83.58. Gold rose 2.6% to $4,349.30 an ounce.
The US dollar fell 0.25% against the euro and 0.04% against the yen. The 10-year Treasury yield fell 5.9 basis points to 4.426%.
“The deal with the Islamic Republic of Iran is now complete. Congratulations everyone! I do hereby fully authorize the free opening of the Straits of Hormuz and, at the same time, authorize the immediate lifting of the United States naval blockade. Ships of the world, start your engines. Let the oil flow!” Trump made a post on social networks half an hour before the start of futures trading in the United States
Soon after, Iranian President Massoud Pezeshkian said in a message on X“An agreement has been reached.” Deputy Foreign Minister Kazem Gharibabadi confirmed that the US and Iran will formally sign the agreement on Friday in Geneva.
Trump later added that the Strait of Hormuz would reopen on Friday if the deal was signed and suggested more time was needed to clear the narrow waterway of mines.
Pakistan, which acted as a mediator during the talks, said the two countries would sign the agreement electronically on Sunday.
Since the US and Israel launched a war against Iran in late February, global markets have been gripped by the biggest oil outage in history when Tehran closed the Strait of Hormuz.
While Iran’s conventional forces were decimated, its Islamic Revolutionary Guard Corps retained enough combat power to deter world shipping.
The US has not been able to restore full freedom of navigation, albeit cut alternative route across the strait for an ever-increasing trickle of oil to flow from the Persian Gulf.
Although the deal announced on Sunday should allow traffic on the Strait of Hormuz to return to normal levels, which accounted for 20% of the world’s pre-war oil and liquefied natural gas flows, the most contentious issues will be debated over the next 60 days.
For example, Iran has demanded the lifting of sanctions and access to its frozen assets, while the details of how Iran’s nuclear program will be handled remain unclear.
Trump told Wall Street Journal that Iran has agreed not to obtain nuclear weapons, but that the extraction of its enriched uranium may come later.
“We’ll get the nuclear dust later when we’re ready to go in and do it. I’d say there’s no rush for the next month or two,” he said.
Trump insisted that Iran would not receive any money as part of the deal, but added that sanctions could be lifted. U.S. officials have previously said sanctions could be eased in stages if Iran follows through on its nuclear pledges.
The president also abandoned one of his original priorities for the Iran war. Hours later, the airstrikes began, and he called on the Iranian people to overthrow the regime. This came after he warned Tehran against cracking down on mass protests that began in late December.
To be sure, the US and Israel killed Supreme Leader Ali Khamenei and other top officials, but he was quickly replaced by his son and other hardliners rose to leadership positions.
“As far as regime change goes, I’ve never cared about regime change. This is the third group we’re dealing with, and it’s the most rational group,” Trump said. magazine.
Republican Sen. Lindsey Graham, a Trump ally and staunch Iran hawk, expressed skepticism about the deal, including details about Iran’s nuclear program.
“I am somewhat concerned that Iran’s view of the deal appears to be different than what the American negotiating team is asserting,” Graham wrote in post on social media.
In fact, before Trump announced the deal, Bloomberg reported on it at least three different Iranian versions The memorandum of understanding was circulated.
