U.S. and Iran Sign Temporary Ceasefire and Reopen Strait of Hormuz

Overview

• The two governments signed a 14‑point temporary memorandum that halts active hostilities and pledges to reopen the Strait of Hormuz, with both sides agreeing to seek a final deal within 60 days.
• The memorandum produced an immediate market response, with Brent and WTI futures falling about 1–2 percent as investors priced lower short‑term supply risk.
• The accord began to ease shipping routes, with tankers reported transiting the Strait after the deal, which reinforced expectations of rising Gulf exports in coming weeks.
• Analysts warn near‑term oil volumes may stay limited because some cargoes already left via bypass routes and shipowners may delay returning to Persian Gulf sailings until the agreement proves durable.
• The IEA cautioned that full, lasting implementation could push the market toward a notable supply surplus by 2027 and that stronger U.S. interest‑rate tightening could blunt demand and keep prices under pressure.