Key facts
- An interim peace agreement between the US and Iran is scheduled for June 19.
- The deal is expected to lead to the reopening of the Strait of Hormuz.
- Brent crude oil prices have fallen significantly, recovering 80% of their earlier gains.
- Market relief rallies were driven by short-covering and unwinding of hedges.
- The truce is considered temporary, with ongoing risks to energy infrastructure and prices.
- Equities face headwinds from a potentially hawkish Federal Reserve and US AI trade policy.
- A substantial increase in stock supply is anticipated.
The equity market is navigating a complex landscape following an interim peace agreement between the US and Iran, scheduled for signing on June 19. This accord is expected to facilitate the reopening of the Strait of Hormuz, a critical global shipping lane, and has already led to a significant reversal in Brent crude oil prices, which have fallen approximately 80% from their peak since the conflict began.