Key facts
- A preliminary US-Iran peace deal to reopen the Strait of Hormuz has been announced.
- Bitcoin surged to near $66,000, with other cryptocurrencies also posting gains.
- US stock futures jumped, and Asian equity markets, including Japan's Nikkei 225, hit record highs.
- Europe's STOXX 600 index reached an all-time high.
- Crude oil prices fell to three-month lows as fears of energy supply disruptions eased.
- An LNG tanker is en route to the Strait of Hormuz to test the agreement's implementation.
A preliminary peace deal between the United States and Iran to reopen the Strait of Hormuz has triggered a significant global market rally, boosting risk sentiment. Bitcoin prices surged, nearing $66,000, with other cryptocurrencies also posting gains. US stock futures jumped, and Asian equity markets opened higher, reflecting optimism over reduced geopolitical tensions.
Europe's STOXX 600 index hit an all-time high, surpassing its previous record set before the conflict began. Many other major indexes in the U.S. and Asia are also trading well above their pre-war peaks.
Veteran trader Peter Brandt predicted a massive rally in the S&P 500, forecasting a rise to $7,904 based on technical chart patterns. He also noted Bitcoin's rebound, though he indicated it is still moving in descending channels.
Conversely, crude oil prices experienced a sharp decline, falling to three-month lows as fears of energy supply disruptions eased. WTI crude futures dropped over 4.8% to $80.77 per barrel, and Brent crude fell 4.33% to $83.53.
An LNG tanker is heading for the Strait of Hormuz to test the seriousness of the reopening agreement, with Iran confirming the deal and demanding sanctions relief.