Peace Hopes Spark a Global Rally

Oil prices tumble toward four-week lows as details of a peace deal emerge.

Key Takeaways

• An Outline of a Peace Deal Emerges: It seems the rumors are true this time, and there is a framework for a deal to end the conflict in the Middle East. Details are still a bit sketchy, but it is said to contain 14 provisions, including the reopening of the Strait of Hormuz within 30 days and the release of $24 billion in frozen Iranian assets. Of course, as one might expect, Iran has yet to confirm that there is a deal in place, but markets did not wait around for such trifling details. Oil prices are responding overnight, as both Brent and WTI have pulled back by more than -4.0%.