President Donald Trump said over the weekend that the United States and Iran had reached a peace deal and will sign it on June 19.
The agreement includes, among other things, the removal of the US naval blockade and the reopening of the Strait of Hormuz. Crude fell 5% to around $80 a barrel. barrel. It is now down about 33% from its high of $120 in early March.
Stock markets rose on the news. Indices rose across the world, except in Tel Aviv, and U.S. stocks rose in premarket trade. The Invesco QQQ ETF, which tracks the Nasdaq 100 index, added 2% in premarket trading.
Bitcoin and precious metals also won. The largest cryptocurrency briefly topped $66,000 and was recently 2.7% higher over 24 hours, with most of the gains coming on Sunday shortly after Trump’s announcement. Gold is up nearly 3% over 24 hours to trade above $4,330 a barrel. ounces.
This extended ceasefire will remain in place for another 60 days while negotiations for a final agreement continue. It is worth bearing in mind that the numerous shifts in negotiations over recent months, including cease-fires, breakdowns and renewed agreements, suggest that the path to a lasting solution is unlikely to be straightforward
