US and Iran Agree to Peace Deal to Reopen Strait of Hormuz The fragile peace emerging between the US and Iran is reshaping global markets and domestic politics even before leaders formally sign the agreement to reopen the Strait of Hormuz.

In early June, US President Donald Trump first signalled a diplomatic shift, telling reporters that Washington was “close to [a] deal with Iran” and had called off planned strikes, as markets rallied and oil prices dipped on expectations the Strait would reopen. Within hours, Pakistan’s prime minister confirmed that the “US-Iran peace deal text [was] agreed,” with American officials expecting a signing “in coming days.”

By June 13, Trump was publicly committing to a timeline, saying the US and Iran would “sign deal on Sunday to reopen Strait,” underscoring how central the waterway had become to the talks. Over that weekend, negotiators hammered out a 60‑day interim framework focused on reopening Hormuz and halting military operations, described as a “truce of convenience” that fell short of the “unconditional surrender” once promised by the White House.

On June 15, officials in Washington and Tehran confirmed they had agreed a package to “open Strait of Hormuz and extend ceasefire,” including an end to the US naval blockade of Iranian ports, with a formal signing set for Friday in Switzerland. Pakistan’s premier announced an “immediate and permanent termination of military operations on all fronts,” framing the outcome as a war “without victors” that had produced only a “fragile Iran peace.”

Energy markets reacted first: “Oil falls on US-Iran deal but Hormuz backlog may last weeks,” analysts warned, noting supply flows could remain vulnerable to renewed disruption. Equities followed, as “stocks surge as US-Iran deal ignites global rally,” with investor sentiment also buoyed by a major tech IPO. In Asia, “tech stocks surged after the Iran-US deal, and AI chipmakers gained the most,” driving Japan’s Nikkei 225 to a record high as geopolitical risk premia evaporated overnight.

At home, however, the deal has sharpened political fault lines. Commentators say the “Iran deal leaves Trump fighting a war at home,” splitting Republicans and leaving Americans facing higher prices and no clear sense of victory even as markets celebrate de-escalation.

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