Pakistan PM announced US-Iran peace deal ending 4-month war. Strait of Hormuz reopens, oil sanctions lifted. US inflation hit 4.2% in May; ECB hiked; Fed expects rate rise. Signing June 19.
Alpha Score of 48 reflects weak overall profile with poor momentum, weak value, strong quality, weak sentiment.
Pakistan Prime Minister Shehbaz Sharif announced Sunday that the United States and Iran have reached a peace deal ending nearly four months of war. Sharif said on X that the agreement calls for "the immediate and permanent termination of military operations on all fronts, including in Lebanon." The official signing is set for Friday, June 19 in Switzerland.
President Donald Trump confirmed the deal on Truth Social, authorizing the reopening of the Strait of Hormuz and removal of the U.S. naval blockade. The waterway has been effectively closed since the conflict began in late February. Closure curbed oil and gas shipments, pushing prices higher and fueling stagflation fears.
U.S. annual inflation hit 4.2% in May, the highest in three years. The European Central Bank raised its key rate by a quarter point in June, the first hike since 2023. The ECB cited the energy shock from the war for pushing euro zone inflation off target. The Federal Reserve is now expected to raise rates before the end of the year, according to the CME FedWatch tool. That marks a reversal from earlier in the war, when rate-cut bets dominated.
The 14-page draft memorandum includes a U.S. commitment to lift oil sanctions on Iran and an Iranian commitment to reopen the Strait of Hormuz within 30 days, Iranian state media reported Friday.
The deal nearly came undone Sunday. Israel and Iran-backed Hezbollah exchanged strikes in Lebanon, drawing condemnation from Trump. He warned both sides not to "blow it."
Vice President JD Vance, in a Fox News interview after the announcement, said the agreement will "drive down the cost of energy, not just now but for the long term."
The signing ceremony in Switzerland Friday will test whether the ceasefire holds after weeks of mixed messaging from Washington and Tehran.
The CME stock page tracks the exchange behind the FedWatch tool now signaling a rate hike.
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