Global markets rally on US-Iran peace framework | JQJO

United States financial markets rallied sharply on Tuesday after Washington and Tehran announced a tentative framework agreement aimed at ending their ongoing conflict and reopening the Strait of Hormuz, a key global energy corridor. The S&P 500 rose 1.7% in Monday’s session, finishing just below its all-time high, while the tech-heavy Nasdaq Composite climbed 3.1%. The Dow Jones Industrial Average closed at a record 51,671.03, as investors moved into high-growth stocks and other risk-on assets. Market analysts cited the anticipated restoration of stability in the Strait as the primary catalyst for the broad-based surge in major U.S. indices.

Global energy markets also reacted strongly to the announcement. Brent crude futures fell 4.8% as traders anticipated that a major shipping backlog in the Strait of Hormuz could gradually be cleared. The International Shipping Chamber reports that about 500 vessels are currently waiting to transit the waterway, which typically carries about one-fifth of global oil and liquefied natural gas supplies. Officials said it will take months for energy flows to fully normalize, but the immediate price moves signaled a sharp reduction in geopolitical risk premiums and reinforced expectations of lower fuel costs and easing inflation pressures.