TLDR
- A U.S.-Iran ceasefire deal announced Sunday is driving sharp moves across global markets
- S&P 500 futures rose 1.3% and Nasdaq 100 futures jumped over 2% on the news
- Brent crude oil dropped roughly 5% to around $83 a barrel as supply fears eased
- European natural gas prices fell sharply, with the Dutch benchmark hitting one-month lows
- The Strait of Hormuz will reopen after Friday’s formal signing ceremony in Switzerland
A ceasefire agreement between the United States and Iran is moving global markets on Monday. Stock futures are rising, oil prices are falling, and European natural gas contracts are sliding as investors react to the news.
The deal was announced late Sunday by President Donald Trump, who called the agreement “complete” on Truth Social. Pakistan’s Prime Minister Shehbaz Sharif, whose country brokered the deal, said a formal signing ceremony is set for Friday in Switzerland.
Iranian Deputy Foreign Minister Gharibabadi confirmed the accord on state television. Iran has signaled that talks on a full peace deal will begin within 60 days.
Stock Futures Jump at Open
Nasdaq 100 futures led the gains, climbing over 2%. S&P 500 futures were up 1.3% and Dow Jones futures rose around 1%. This follows a strong Friday session on Wall Street.
SpaceX also added to the positive mood. Shares rose nearly 7% in premarket trading after the company’s public debut on Friday, when shares surged over 19% and pushed the company’s market value above $2 trillion.
Investors are also watching the Federal Reserve this week. The Fed’s policy decision is due Wednesday. Traders are currently pricing in a 98% chance that rates stay unchanged, according to CME FedWatch data.
The NYSE and Nasdaq will be closed Friday for the Juneteenth holiday.
Oil and Gas Prices Drop
The ceasefire includes a commitment to reopen the Strait of Hormuz, a critical route for global oil shipments. Trump said the waterway will reopen for mine removal following Friday’s signing.
Brent crude futures fell roughly 5% to just above $83 a barrel. West Texas Intermediate dropped to around $80 a barrel.
European natural gas also fell. The Dutch front-month contract dropped to 33.36 euros per megawatt hour. The British gas contract fell 6% to 106.17 pence per therm. Both hit levels not seen in over a month.
EU gas storage currently sits at 44.34% full. At the same time last year, storage was at 53.02%. That gap means Europe still faces a challenge building up supplies before winter.
As part of the deal, Iran could receive financial rewards, a release of frozen assets, and an easing of oil sanctions, according to experts. The future of Iran’s nuclear program remains an open question.
Markets are processing both the geopolitical relief and the practical impact on energy supply. Storage levels in Europe remain below last year’s pace, keeping some pressure on the gas market even as prices fall.
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