(RTTNews) – Indian shares look set to open on a buoyant note on Monday after the United States and Iran have reached an initial agreement to end their war, lift the U.S. naval blockade on Iranian ports, and reopen the Strait of Hormuz that affects roughly one-fifth of global oil shipment.
The dollar weakened, U.S. Treasury yields fell and Brent crude futures slumped nearly 4 percent to below $84 a barrel following the U.S.-Iran deal announcement.
Asian markets rallied and gold prices were up more than 2 percent at $4,327 an ounce on eased inflation and rate hike worries ahead of a slew of central bank meetings due later in the week.
“Let the oil flow!” U.S. President Donald Trump exclaimed on Sunday and declared that the “great deal” would bring “peace and security to the whole region.”
U.S. Vice President JD Vance said that Iran never processing a nuclear weapon was “build into this agreement” and that the U.S. will be able to verify compliance.
Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed that a deal had been reached and said the text would be released following a signing ceremony in Switzerland on Friday.
Iran’s Supreme National Security Council stated that “final negotiations will be postponed until after the implementation of the other party’s commitments under the memorandum.”
As the specific terms of the agreement remain unknown, analysts have warned that the agreement may face implementation risks.
U.S. stocks closed higher on Friday, with underlying sentiment underpinned by lower oil prices on optimism for a Middle East peace deal and SpaceX’s highly anticipated public debut.
After Iranian media reported alleged terms of a possible ceasefire agreement, Trump claimed the leaked terms of the deal have “NOTHING to do with the terms that were agreed to, in writing,” adding that there is no such thing as dealing in good faith with them.
His remarks came after IRNA published what is described as seven main points of the deal indicating virtually no compromise from Iran on key issues.
Iranian Foreign Minister Abbas Aragchi, meanwhile, stated that an “Islamabad Memorandum of Understanding” towards a ceasefire had “never been closer.”
The Dow climbed 0.7 percent, the S&P 500 gained half a percent and the tech-heavy Nasdaq Composite edged up by 0.3 percent.
European stocks rose sharply on Friday after Trump called off a previously announced attack on Iran and said a peace deal could be finalized in Europe over the weekend.
The pan-European STOXX 600 soared 1.9 percent. While the German DAX and France’s CAC 40 both surged around 1.8 percent, the U.K.’s FTSE 100 added 1.6 percent.
