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and global markets today By Anna Szymanski, Editor-in-Charge, Reuters Open Interest Global stocks surged and oil prices slid on Monday after the United States and Iran agreed on a preliminary peace deal.
The memorandum of understanding should see the Strait of Hormuz reopen following more than three months of near-total disruption that upended the global energy market.
President Donald Trump and Pakistani Prime Minister Shehbaz Sharif announced a deal had been struck late on Sunday.
But the agreement - scheduled to be signed on Friday in Switzerland - leaves many questions unanswered, suggesting market celebrations may prove premature.
But first, listen to the latest episode of the Morning Bid daily podcast - a special edition on the market implications of the U.S.-Iran deal.
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The precise terms of the U.S.-Iran MoU remain unclear, with details around thornier issues - such as Iran's nuclear programme - deferred to further negotiations during a 60-day ceasefire period.
It's also unclear whether traffic through the strait will return to normal levels any time soon.
President Trump wrote on social media that the strait would reopen toll-free and that the U.S.
naval blockade would be removed, declaring: "Let the oil flow!" But actually restarting shut-in facilities and reorienting tankers will take time, while the entire episode has raised caution among shippers.
Brent crude fell over 4% on news of the U.S.-Iran deal, trading at around $83 per barrel, its lowest level since early March.
In Asia, equity markets in big net energy importers certainly welcomed the announcement, with Japan's Nikkei and South Korea's KOSPI both rising by 5%.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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