Markets Move After U.S.-Iran Deal to Reopen Strait of Hormuz

President Donald Trump announced a deal with Iran that would reopen the Strait of Hormuz and ease pressure on energy markets. The announcement caused oil prices to fall more than 4 percent and pushed Brent crude to $84.21 per barrel. Global stock futures rose while investors weighed the prospect of restored shipping through the Hormuz corridor. Pakistani mediation was cited as part of the arrangement, and officials said the agreement would extend the ceasefire for 60 days. Traders in Asia and Europe also bought stocks and reduced oil positions.

Although the reopening could help supply, the process will be slow because ports and shipping lanes must be cleared and repaired. Energy companies said production and refining will take time to return to prior levels, and consumers may not see lower pump prices immediately. Markets have reacted strongly to the diplomatic step, but analysts warn that full normalization could take months while demining and logistics proceed. Before the crisis, the strait handled about 20 percent of the world’s oil and gas shipments, so its reopening matters for global supply.