President Donald Trump said over the weekend that the U.S and Iran had reached a peace deal and will sign it on June 19.
Among other conditions, the agreement sees the removal of the U.S. naval blockade and the reopening of the Strait of Hormuz. Crude oil fell 5% to around $80 per barrel. It is now down roughly 33% from its early March high of $120.
Equity markets rose on the news. Indexes advanced worldwide, except in Tel Aviv, and U.S. stocks rallied in pre-market trading. The Invesco QQQ ETF, which tracks the Nasdaq 100 index, added 2% in pre-market trading.
Bitcoin and precious metals also gained. The largest cryptocurrency briefly topped $66,000, and was recently 2.7% higher over 24 hours, with most of the advance occurring on Sunday shortly after Trump’s announcement. Gold has risen nearly 3% over 24 hours to trade above $4,330 per ounce.
This extended ceasefire will remain in place for another 60 days, while talks on a final deal proceed. It’s worth keeping in mind the numerous shifts in negotiations over recent months, including ceasefires, breakdowns and renewed agreements, which suggest the path to a lasting resolution is unlikely to be straightforward