US-Iran War Ceasefire Deal: Markets Rally, Signing Set for Friday

On Sunday, US President Donald Trump announced via social media that a deal had been reached with Iran to end their monthslong war, declaring 'The Deal with the Islamic Republic of Iran is now complete.' The agreement, mediated by Pakistan, includes an immediate and permanent end to military operations across all fronts — including in Lebanon — and a plan to reopen the Strait of Hormuz, one of the world's most critical oil shipping chokepoints. A formal signing ceremony is scheduled for Friday in Switzerland. Iran's Supreme National Security Council confirmed the terms, and UN Secretary-General António Guterres called it 'a critical step' toward resolving the conflict through diplomacy.

Global markets reacted immediately: Asian stock markets — including Japan and South Korea — surged, while crude oil prices fell sharply overnight. Energy experts cautioned, however, that oil and gas supplies could take months to normalize even after the Strait reopens, given damage to infrastructure and lingering navigation risks. Trump, who turned 80 on Sunday, celebrated the announcement alongside a UFC birthday event at the White House.

Not all reactions were uniformly positive. US Senator Lindsey Graham expressed concern that Washington and Tehran may hold differing interpretations of the agreement's terms. US diplomat Alan Eyre stressed there is 'no deal until it has been formalized.' Leaders from Australia, Japan, Germany, Turkey, and New Zealand issued welcoming statements. The deal's durability depends on the Friday signing and 60 days of follow-on negotiations covering at least four key points, including sanctions relief and Iran's nuclear program.

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