Oil Prices Slide as U.S.-Iran Deal Lifts Markets Worldwide

Markets around the world opened sharply higher on Monday after reports of a U.S.-Iran agreement and a planned opening of the Strait of Hormuz. Oil prices fell steeply on expectations that shipping through the vital waterway would resume, while traders also welcomed the broader diplomatic breakthrough.

In Asia, stocks surged, with Japan’s market jumping 5% and South Korea’s bourse rising by a similar amount. Brent crude traded at about $84 a barrel, down roughly 4%, while WTI stood near $80, off 4.5%. The article also said the agreement is expected to be signed on Friday in Switzerland.

Donald Trump announced on Truth Social that “the deal with the Islamic Republic of Iran is now completed.” He said the Strait of Hormuz would open without toll collection and that the United States would end its naval blockade of Iran. “World ships, start your engines,” Trump wrote. “Let the oil flow!” In a later post, he said the strait would open on Friday, the same day as the planned formal peace-signing ceremony in Switzerland, and added, “With the opening of the strait after the signing of the agreement on Friday for mine clearance, oil will flow again from both sides for the region and for the whole world!”

Wall Street futures were also up about 1% in early trading. U.S. markets will have a shortened week, with no trading on Friday because of Emancipation Day, and stock exchanges in China and Hong Kong are closed for a local holiday.