Markets are meeting amid the prospect of a US-Iran deal | US-Israel War on Iran News

Markets are betting the deal will reopen the Strait of Hormuz and reduce global economic uncertainty caused by shutting down the vital oil and gas route.

The U.S. stock market has been nearing record highs and oil prices have fallen amid renewed hopes that a deal to end the war between the U.S. and Iran is close.

The meeting took place on Wednesday as talks continue between Washington and Tehran, with markets betting that a deal will reopen the Strait of Hormuz, easing oil and gas concerns and easing the deep uncertainty plaguing the global economy.

Oil prices fell sharply after an Iranian media outlet said it had obtained a preliminary document detailing the terms of the deal.

The price of US oil fell 5.5 percent to settle at $ 88.68, while Brent crude, the world’s oil benchmark, fell to $ 92 after prices traded above $ 100 last week.

The report said that Iran would allow people to pass through the strait within 30 days. It also said that the US would lift its naval blockade of Iranian ports.

Prices continued to fall despite the White House dismissing the report as a “complete lie”.

The S&P 500 rose 0.1 percent and extended its all-time high yesterday. The Dow Jones Industrial Average was up 243, or 0.5 percent, with an hour left in trading, and the Nasdaq composite was up 0.1 percent.

Wednesday is far from the first time markets have rallied amid reports of a possible ceasefire, but they also fell as talks failed to produce a resolution.

However, the strength of the latest escalation reflects what was said last week which suggests that the two parties may be closer than ever to reaching a deal.

President Donald Trump said at a cabinet meeting on Wednesday that US officials were not satisfied with the deal, “but we will be”.

“I think they’re going to start giving us the things they need to give us,” he said. “And if they do, that’s great, and if they don’t, then the guy to my left will finish them off,” he said, referring to Defense Secretary Pete Hegseth.

Points to stick to

It is not yet clear whether the two parties have agreed on the key terms of the deal, including the fate of about 440 kilograms (970lbs) of highly enriched uranium; Iran’s nuclear program, which the US has long insisted it wants completely dismantled; Tehran’s ballistic missiles and its support for armed forces in the region.

It is also unclear whether a ceasefire in Lebanon will be part of the agreement. Iranian officials have repeatedly said that any deal must include this. However, Prime Minister Benjamin Netanyahu this week ordered the Israeli military to step up attacks on Hezbollah.

There are also questions about whether Washington will agree to lift its sanctions against Iran and release millions in frozen goods.