Trump-Iran deal sends oil prices plunging and global stocks higher

President Donald Trump’s dramatic announcement of a peace agreement with Iran and the reopening of the Strait of Hormuz jolted global markets on Monday. The move ended months of an energy blockade and sent crude prices down more than 4% within hours, while investors rushed into stocks worldwide.

Brent crude fell below $84 a barrel, its lowest level since the war began in March. Trump said he had ordered an end to the American blockade of Iranian ports and that the Strait of Hormuz, through which about one fifth of global oil supplies passes, would reopen for traffic on Friday.

Asian markets surged as energy prices dropped. FX analysts said investors’ rising appetite for risk was outweighing concerns about technical details that have not yet been disclosed. On Truth Social, Trump wrote, “World ships, start your engines. Let the oil flow!”

The announcement eased a market that had been under severe pressure from uncertainty and a loss of about 20 million barrels of oil per day. Even so, experts warned recovery could take time. Rystad Energy said restoring 85% of the lost oil volume could take until October, and that complex talks over Iran’s nuclear program in the next 60 days could limit further price declines. For now, the global economy appears to be celebrating what looks like the end of the biggest energy crisis in history.