**BREAKING: US-Iran Peace Deal Announced, Strait of Hormuz to Reopen**
Pakistan’s Prime Minister Shehbaz Sharif announced a peace agreement between the United States and Iran, ending nearly four months of military conflict. Both nations have declared an immediate and permanent cessation of military operations across all fronts, including Lebanon. The deal is expected to result in the reopening of the Strait of Hormuz, a critical maritime chokepoint through which approximately one-fifth of global oil supply passes.
The announcement comes as oil markets have been volatile amid prolonged shipping disruptions and elevated geopolitical risk premiums. Traders should anticipate immediate downward pressure on crude oil prices as supply concerns ease with the strait’s reopening. Energy sector equities may experience significant volatility as markets reassess risk factors. Currency markets could see dollar weakness as safe-haven demand diminishes, while emerging market currencies and risk assets may rally.
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FXnCO Insight
** Traders should prepare for sharp volatility in energy markets and related currency pairs, with potential profit-taking opportunities as geopolitical risk premiums rapidly unwind from oil futures and regional equity positions.
Source: FXStreet