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#USIranPeaceDealReachedStraitOfHormuzToOpen
US-Iran Peace Deal Reached: Strait of Hormuz to Open

Peace Deal Between United States and Iran is Complete
On June 14, 2026, President Trump announced that the peace deal between the United States and Iran is now complete. Pakistan's Prime Minister Shehbaz Sharif confirmed that both countries have declared an immediate and permanent termination of military operations on all fronts. This agreement marks the end of a 15-week war that severely impacted global markets. The formal signing will take place in Switzerland on Friday. Trump wrote on social media that the Strait of Hormuz will also be reopened and the U.S. naval blockade on Iran will end immediately. Pakistan played a mediating role, and this is being considered the biggest diplomatic breakthrough in history.

Strait of Hormuz Will Reopen

The Strait of Hormuz is the vital waterway through which approximately 20% of the world's oil and liquefied natural gas passes. This route remained closed for nearly 3 months, creating the biggest oil supply crisis in global history. Trump stated that the Strait of Hormuz will open toll-free and directed ships to start their engines. Iran's Revolutionary Guards Navy also confirmed that safe transit through the strait will be ensured with new procedures in place once U.S. threats end. However, analysts believe that restoring shipping activity to pre-war levels will take time because reactivating a route that remained closed for 3 months is not easy.

Major Drop in Oil Prices

Oil prices have seen a sharp decline. Brent crude fell 5.2% to $82.78 per barrel, reaching its lowest level since March. WTI crude dropped 5.5% to $80.17 per barrel. Throughout the past week, oil prices fell from $93 to $87.50 by Friday, and have now declined further. During the war, oil had risen from around $60 to $93, representing approximately a 55% increase. In the United States, average gas pump prices reached $4.50 per gallon, up from less than $3 before the war. However, analysts believe it will take some time for oil to return to the pre-closure level of $60 because supply restoration is not straightforward.

Positive Response in Global Markets

Global markets have shown tremendous positive response. In the United States, the Dow Jones hit a new record, rising 1.4%. The S&P 500 climbed 2% and the Nasdaq surged 3.1%. European markets also set new records, rising 1.3%. In Asia, the MSCI index jumped 3%, with Japan's Nikkei 225 and South Korea's Kospi leading the way. The 10-year U.S. Treasury yields fell 4 basis points to 4.44%, indicating that the market sees reduced risk of further interest rate hikes. According to chief market analyst Tim Waterer, the drop in oil and weaker dollar have eased inflation concerns, bringing calm to the markets.

Hope for Improved Oil Supply

According to Vivek Dhar, commodities strategist at Commonwealth Bank of Australia, if oil flow through the Strait of Hormuz reaches 60% to 70% of pre-war levels, the global oil market will return to its previous oversupply situation. During the war, the world lost millions of barrels of oil and gas supply. Trump revealed that the U.S. military was secretly moving millions of barrels of oil daily through the strait to ease pressure on global markets. However, Oxford Economics analysts caution that shipping activity is unlikely to immediately return to normal levels and recovery will take time.

Inflation Concerns Have Decreased

Despite CPI remaining at 4.2%, the likelihood of the U.S. Federal Reserve raising interest rates has decreased. According to the CME FedWatch tool, the probability of a rate hike in December dropped from 69% to 53%. The decline in oil prices is reducing inflationary pressure, which has weakened the dollar and brought down 10-year Treasury yields. Heraeus analysts note that while CPI at 4.2% suggests a higher-for-longer interest rate environment, the oil decline from the peace deal is impacting inflation. If oil remains around $80, further inflation reduction could open the path for rate cuts.

Rebound in Gold and Crypto Markets

Gold prices rose 2% to $4,304.11 per ounce, reaching their highest level since June 9. U.S. gold futures for August 2026 delivery reached $4,325.20 per ounce. Silver also climbed back above $70 per ounce. Gold had fallen 20% during the war but is now rebounding as the dollar weakened and inflation concerns eased. BTC rose 5% to reach $67,000, its highest level since the June selloff. In the CoinDesk Index 20, Bittensor TAO led with a 31.9% surge. XRP jumped 8% to above $1.20. According to Coinbase's Brian Armstrong, BTC has bottomed at $60,000, and Glassnode suggests $68,000 to $80,000 could be the next bullish marker.

Risk to Global Economy Has Decreased

This peace deal is the biggest positive signal for the global economy. The 15 weeks of war had dragged down global indices, raised oil prices, increased inflation, and kept interest rates elevated. Now, with the Strait of Hormuz reopening, oil supply is being restored, reducing the biggest risk to the global economy. However, some analysts note that Iran's nuclear program issue remains unresolved and will be addressed in future negotiations. The formal signing will take place on Friday in Switzerland, and the topic will also be discussed at the G7 summit. The success of the SpaceX IPO and the first meeting of new Fed Chair Kevin Warsh are also important events for the market. If the Strait of Hormuz is restored within 30 days, the global economy could return to its pre-war pace.

This news indicates that peace has been achieved between the United States and Iran, and the important oil supply route is reopening, which is having a major positive impact on global markets. Oil fell 5% to its lowest level in 3 months. Gold rose 2% and BTC rebounded 5%. Global markets set records and inflation concerns have decreased.

@Gate_Square #CryptoMarketExtendsRebound