June S&P 500 E-Mini futures (ESM26) are up +1.22%, and June Nasdaq 100 E-Mini futures (NQM26) are up +1.99% this morning, pointing to a sharply higher open on Wall Street as oil prices sank after the U.S. and Iran reached an interim peace deal that would reopen the Strait of Hormuz.
U.S. President Donald Trump said in a social media post on Sunday that the Strait of Hormuz would reopen on Friday, allowing time “for purposes of mine removal.” In an earlier post, Mr. Trump said the strait would reopen “toll-free” and that the U.S. naval blockade of Iranian ports would be lifted simultaneously. Pakistani Prime Minister Shehbaz Sharif said the agreement would be officially signed on Friday in Switzerland. Bloomberg reported on Monday that Qatar will host U.S. and Iranian delegations this week to finalize the details of the signing and prepare for a new round of negotiations on Iran’s nuclear program. Trump told the New York Times that if a nuclear agreement is not reached, he could resume military strikes.
