US and Iran agree peace deal to end war, Trump and Pakistan announce
President Donald Trump and Pakistan announced that the United States and Iran have reached a peace deal to end the war, with the Strait of Hormuz set to reopen and a signing ceremony planned for Sunday. Oil prices slid more than 4% on the news as global stock futures jumped.
Trump said the United States and Iran had completed a peace deal brokered by Pakistan after weeks of conflict, with Pakistani officials confirming the agreement and Tehran announcing that a US delegation was traveling for talks. Trump said he expected a formal signing to take place on Sunday.
The agreement provides for the reopening of the Strait of Hormuz, through which roughly a fifth of the world's seaborne oil passes. Brent crude fell more than 4% in early reaction, US equity futures rose and the dollar slipped. Reports indicated that LNG tankers were already heading toward the strait while shipping firms reassessed routes.
Israeli air strikes on Lebanon continued through the day, an early test of how durable the deal will prove. Iranian officials said talks could be suspended if Israel's attacks did not stop. G7 leaders meet tomorrow in Évian, where the Iran agreement and the war in Ukraine are expected to dominate the agenda. Not investment advice.
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