Oil Falls, Markets Rise After Trump Announces Iran Deal

Global markets moved sharply after U.S. President Donald Trump announced a memorandum of understandings with Iran and the expected reopening of the Strait of Hormuz.

Following the announcement, Brent crude fell below $84 a barrel, its lowest level since the war began in March. Oil prices dropped more than 4% within hours, as investors reacted to Trump’s statement that he had ordered an end to the American blockade on Iranian ports and that the Strait of Hormuz would reopen to traffic on Friday.

The strait is one of the most important energy routes in the world, with around one-fifth of global oil supply passing through it. Its closure had created months of pressure on energy markets and contributed to a loss of roughly 20 million barrels of oil per day.

Trump celebrated the move on Truth Social, writing: “Ships of the world, start your engines. Let the oil flow.”

The announcement immediately reduced fears of a prolonged energy crisis and pushed investors back toward riskier assets. Asian stock markets recorded sharp gains, while analysts said the renewed appetite for risk was outweighing concerns over the technical details of the agreement, which have not yet been fully released.

In a move that surprised some market watchers, the dollar weakened rather than strengthened. The U.S. currency fell to a 10-day low as investors moved away from safe-haven assets and back into equities, other currencies and higher-risk investments.

The dollar index fell 0.1% to 99.395, its lowest level since June 5. The euro rose 0.5% against the dollar to around $1.1622, while the British pound climbed 0.4% to $1.3459.

Currency analysts said the agreement and the halt in fighting reduced demand for the dollar, which is usually viewed as a safe asset during wars and global crises. If the de-escalation continues, analysts believe the dollar could weaken further in the coming days.

Despite the market optimism, experts warned that the recovery will not be immediate. Rystad Energy estimated that restoring 85% of the lost oil volume could take until October. The next 60 days of negotiations over Iran’s nuclear program could also limit further drops in oil prices if talks become strained.

For now, investors are treating the announcement as a turning point. Energy prices are falling, stock markets are rising, and the global economy is reacting as though one of the largest energy crises in recent history may be nearing its end.