TLDR
- Washington and Tehran reached an interim peace agreement, with official signing ceremony planned for Friday in Switzerland
- Nasdaq 100 futures jumped 2.2%, S&P 500 futures advanced 1.3%, Dow futures gained 1%
- Crude oil prices tumbled sharply, with Brent crude sliding nearly 5% to approximately $83 per barrel
- Bitcoin advanced 2.2% to reach $65,810 amid improved risk appetite across markets
- Fox revealed plans for a $22 billion Roku acquisition, pushing Fox shares down 10% in pre-market activity
Equity futures posted substantial gains Monday morning following news that Washington and Tehran have reached an interim peace agreement over the weekend. The pact is anticipated to reopen the strategically vital Strait of Hormuz, a critical passage for international oil transportation.
President Trump disclosed the agreement Sunday evening via Truth Social, describing it as “complete.” An official signing ceremony has been scheduled for Friday in Switzerland. Trump explained that the intervening period is necessary to clear mines from the Strait of Hormuz.
According to Deutsche Bank’s Jim Reid, negotiations lasted 107 days. “The fizz is staying in markets this morning,” Reid observed, noting that investors responded enthusiastically to the announcement despite Wall Street’s already strong Friday finish.
Nasdaq 100 futures topped the rally, climbing 2.2%. S&P 500 futures increased 1.3% while Dow Jones futures advanced approximately 1%. All three benchmark indexes had already posted gains Friday as market participants anticipated a breakthrough.
Crude Markets Plunge on Reopening Prospects
Oil prices experienced sharp declines following the announcement. Brent crude tumbled nearly 5% to roughly $83 per barrel. West Texas Intermediate declined over 5%, maintaining levels just above $80 per barrel. Market participants are anticipating that reopening the Strait of Hormuz will alleviate supply constraints that had elevated prices.
The Strait may resume tanker traffic as early as this week. Nevertheless, industry observers predict that normalizing shipping operations fully could require several months. Maritime companies remain guarded due to sparse details regarding the agreement’s specific provisions.
Digital Assets and Broader Markets Respond
Bitcoin increased 2.2% during the past 24-hour period, reaching $65,810. The cryptocurrency’s movement reflects enhanced risk tolerance throughout financial markets following the ceasefire announcement.
The U.S. dollar weakened 0.2% versus a basket of major global currencies as investors reduced safe-haven positioning. The benchmark 10-year Treasury yield retreated 5 basis points to 4.44%.
Gold posted gains as declining energy prices altered investor positioning. Meanwhile, Japan’s Nikkei index climbed to an all-time high on the diplomatic breakthrough.
Wall Street also carries forward momentum from SpaceX’s public market debut Friday. The aerospace company’s shares advanced over 5% in Monday premarket action, following a debut-day surge exceeding 19% that propelled SpaceX’s valuation beyond $2 trillion.
On the corporate front, Fox disclosed plans to purchase Roku for $22 billion. Fox shares tumbled approximately 10% before Monday’s opening bell. Roku shares inched up 1.4%, extending Friday’s 20% rally.
Federal Reserve Meeting Looms
Market attention now shifts to the Federal Reserve, scheduled to announce its monetary policy decision Wednesday. Traders are assigning a 98% probability that interest rates remain steady, according to CME FedWatch data.
Persistently elevated inflation figures have sustained speculation about a potential rate increase later this year. The Fed’s announcement represents the week’s pivotal market catalyst.
Both the NYSE and Nasdaq will observe Friday’s Juneteenth holiday with closures.
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