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Markets Rally as U.S.-Iran Peace Agreement Eases Oil Prices

Brent crude tumbled 4.7% and U.S. crude slid 5.5% on Monday after Pakistani Prime Minister Shehbaz Sharif announced a tentative peace agreement between Washington and Tehran. The sudden diplomatic breakthrough promises to keep the Strait of Hormuz open, triggering a broad rally across Asian stock exchanges and weakening the dollar.

Markets Rally as U.S.-Iran Peace Agreement Eases Oil Prices

The deal, confirmed by Sharif via social media, remains short on technical specifics but has already forced a global reassessment of inflationary risks. As energy costs retreat, central banks are signaling a potential review of current monetary policies, providing a rare window of relief for global markets struggling with high interest rates.

President Donald Trump is expected to coordinate the next steps of this framework with regional leaders before heading to France for the upcoming G7 summit. While the geopolitical landscape remains volatile, the immediate market reaction reflects optimism that the critical shipping lanes in the Middle East will remain secure, effectively cooling the recent surge in energy-driven inflation.

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