Global markets rallied on Monday after the United States and Iran announced a framework agreement to end their conflict, raising hopes of lower energy prices, easing inflation pressures and reduced risks to the global economy, according to Business Today.
Dollar Weakens Across the Board
The US dollar slipped to a 10-day low against major currencies as investors moved into riskier assets. Business Today reported that the dollar index, which measures the greenback against a basket of major currencies, fell 0.31% to 99.492, its weakest level since June 5. The euro rose 0.35% to $1.1607, while the British pound gained 0.3% to $1.3448. The Australian dollar climbed 0.5% to $0.7075 and the New Zealand dollar advanced 0.4% to $0.5854. The Japanese yen remained under pressure, weakening to as much as 160.150 per dollar, a level widely viewed by markets as a potential trigger for official intervention.
Oil Prices Tumble on Hormuz Reopening
Oil prices recorded their sharpest fall in weeks as traders welcomed the prospect of normalised crude flows through the Strait of Hormuz. According to Business Today, Brent crude futures dropped more than 4% to around $84 a barrel, while US West Texas Intermediate crude fell over 5% to near $80 a barrel. Both benchmarks touched their lowest levels since March.
Asian Stocks Rally
Stock markets across Asia posted strong gains as investors cheered the easing of geopolitical tensions. Business Today noted:
| Index | Gain |
|---|---|
| Japan's Nikkei 225 | +5.4% |
| South Korea's Kospi | ~+5% |
| Chinese blue-chip stocks | +1.4% |
| Hong Kong's Hang Seng | +0.6% |
| Australia's S&P/ASX 200 | +1.4% |
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.5%. Wall Street futures also pointed higher, with S&P 500 futures up 1% and Dow Jones Industrial Average futures gaining 0.9%.
Gold Jumps 2%
Despite easing geopolitical tensions, gold prices climbed 2%. Business Today reported spot gold rose to $4,304.11 an ounce, while US gold futures for August delivery advanced to $4,325.20. The precious metal touched its highest level since June 9 as investors weighed the implications of the preliminary agreement and the outlook for global interest rates.
Trump Announces Strait of Hormuz Reopening
President Donald Trump hailed the agreement as a major diplomatic breakthrough and announced the immediate reopening of the Strait of Hormuz. According to Business Today, he wrote on Truth Social:
"The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow! President DONALD J. TRUMP"
The announcement came hours before a UFC event hosted at the White House as part of celebrations marking Trump's 80th birthday. However, Trump also warned that military action could resume if negotiations over Iran's nuclear programme fail to produce a final agreement.
Iran Signals Cautious Optimism
Iran welcomed the understanding with Washington but stressed that negotiations were not yet complete. Deputy foreign minister Kazem Gharibabadi said talks on a comprehensive agreement would continue over the next 60 days, with sanctions relief expected to be a key focus. Business Today reported that Iran's obligations under the new understanding would come into effect on Friday, when the agreement is expected to be formally signed in Switzerland. Pakistani Prime Minister Shehbaz Sharif also commented on the pact, though the source text did not provide the full statement.
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