US, Iran peace deal triggers market rally, oil prices fall

Global financial markets responded with marked enthusiasm on Monday after the United States and Iran formally confirmed a ceasefire arrangement, expected to be signed on Friday in Switzerland, effectively drawing a line under the US-Israel military campaign against Iran and signalling the reopening of the Strait of Hormuz, one of the world’s most strategically vital maritime chokepoints.

Earlier on Monday, Pakistan’s Prime Minister and the mediator of Iran-US war, Shehbaz Sharif, said a “peace deal” between the US and Iran had been reached and is “now in place” with the signing ceremony scheduled for Friday in Switzerland.

Asian equity markets led the initial surge. Japan’s Nikkei 225 advanced by more than five per cent during morning trading, while South Korea’s Kospi posted gains of 5.7 per cent. Taiwan’s Taiex rose 2.7 per cent and Australia’s ASX 200 climbed approximately 1.5 per cent, reflecting broad regional confidence in the diplomatic breakthrough.

Sentiment also carried across into after-hours trading for US equities. Futures contracts linked to the S&P 500 gained around one per cent, while those tied to the technology-heavy Nasdaq Composite rose approximately 1.6 per cent.

The commodity markets told a contrasting story. Brent crude, the primary global oil benchmark, fell by more than four per cent, a direct consequence of expectations that the lifting of the US naval blockade on Iranian ports would ease supply constraints that had tightened significantly during the conflict.

Khoon Goh, Head of Asia Research at ANZ, characterised the market movements as a confirmation rally building on sentiment that had already begun shifting late last week. “While markets had already reacted late last week when President Trump indicated that a deal was close, actual confirmation spurred a further rally,” Goh told Al Jazeera. He added that the drop in oil prices carried broader macroeconomic implications, noting it would “provide some relief for central banks around the world who were worried about the inflation outlook.” Goh flagged that investor attention would now pivot to the US Federal Reserve, which is scheduled to deliver its interest rate decision this week.

The diplomatic agreement was initially announced by US President Donald Trump via his Truth Social platform on Sunday, in which he confirmed he had authorised the reopening of the Strait of Hormuz and the withdrawal of the American naval blockade from Iranian ports. Confirmation from the Iranian side followed, with Iran’s Supreme National Security Council and Deputy Foreign Minister Kazem Gharibabadi both affirming that a formal deal had been concluded.

Source: Al Jazeera English on 15 June 2026.