How Did US Markets React To US-Iran Deal?
The Dow futures have gained over 350 points on resumption of trading, while the S&P 500 futures are up over 70 points. The Nasdaq futures are trading with gains of close to 450 points in the initial minutes of trade.
Benchmark indices had ended Friday’s session on a winning note, capping off a volatile week, which also included the worst single-day fall since 2025. However, rising prospects of a peace deal between the US and Iran led to a recovery from lower levels.
What Did Trump Say To Announce The Peace Deal?
In a post on Truth Social, Donald Trump said that the deal with the Islamic Republic Of Iran is now complete. He added that he has now authorized the toll-free opening of the Strait of Hormuz and also the lifting of the US blockadePakistan Prime Minister Shehbaaz Sharif in a post on “X” wrote that both sides have declared the immediate and permanent termination of military operations on all fronts, including that in Lebanon.
He went on to add that the official signing ceremony will take place in Switzerland, on Friday, June 19.
How Have Asset Classes Reacted to US-Iran Deal?
While stock futures have surged, oil prices are seeing a negative reaction to the announcement and on the prospects that the Strait of Hormuz will now be open.Brent Crude is down over 4% in early Asia trading, below the mark of $85 a barrel, while US crude futures or the West Texas Intermediate, are down nearly 5% and are on the verge of slipping below the mark of $80 a barrel.
On the flip side, precious metals such as Gold and Silver are trading with gains, as the deal now brings about hope that the rise in inflation was only temporary in nature and that the US Federal Reserve will now longer have to hike interest rates.
Gold prices in the spot market are trading 2% higher near the mark of $4,300 an ounce, while Silver futures are up nearly 3%, trading close to $70. However, Silver prices are down nearly 50% from their record high levels earlier this year.
The US 10-year bond yield though, remains unchanged near the mark of 4.5%, while the US Dollar index is down 0.3% to trade around the mark of 99.5.
