President Donald Trump said over the weekend that the United States and Iran had reached a peace deal and would sign it on June 19.
Among other conditions, the agreement provides for the lifting of the US naval blockade and the reopening of the Strait of Hormuz. Crude oil fell 5% to around $80 a barrel. It is now down about 33% from its early March high of $120.
Stock markets rose on the news. Indices advanced around the world except Tel Aviv, and U.S. stocks rose in premarket trading. 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 surpassed $66,000 and was recently up 2.7% in 24 hours; Most of the progress came on Sunday, shortly after Trump’s announcement. Gold has risen almost 3% in 24 hours to trade above $4,330 an ounce.
This expanded ceasefire will remain in effect for another 60 days, while talks on a final agreement continue. It is worth keeping in mind the numerous changes in the negotiations in recent months, including ceasefires, breakups and renewed agreements, which suggest that the path to a lasting resolution is unlikely to be smooth.
