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Peace deal lifts markets

Executive summary: US and Iran reached a peace deal, leading to plans to reopen the Strait of Hormuz. The agreement eases supply concerns, supports global trade and reduces the risk of further conflict, influencing energy and equity markets.

Who is involved: United States, Iran, international financial markets, investors.

Likely next: Markets are likely to maintain gains, with possible further diplomatic steps and monitoring of oil supply flows.

The United States and Iran announced a peace agreement that includes the reopening of the Strait of Hormuz. Futures on the S&P 500, Nasdaq and Dow rose on the news. Investors expect reduced geopolitical risk and stabilised energy supplies. No immediate policy changes have been disclosed.

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