Global markets rallied on Monday after the United States and Iran announced a framework agreement to end their conflict, raising hopes of lower energy prices, easing inflation pressures and reduced risks to the global economy.Asian equities surged, the US dollar fell to its weakest level since June 5, and oil prices tumbled more than 4% after US President Donald Trump announced the reopening of the Strait of Hormuz and the end of the US naval blockade of Iran.The development boosted investor appetite for riskier assets, while gold prices also climbed as traders assessed the implications of the preliminary agreement and the path of future interest rates.The US and Iran said on Sunday that they had agreed on a framework to end the war, lift the US blockade of Iran and restore shipping through the Strait of Hormuz, one of the world's most important energy routes.Dollar weakens, oil slidesThe US dollar slipped to a 10-day low against major currencies as investors moved into riskier assets. The euro rose 0.35% to $1.1607, while the British pound gained 0.3% to $1.3448. The Australian dollar climbed 0.5% to $0.7075 and the New Zealand dollar advanced 0.4% to $0.5854.The dollar index, which measures the greenback against a basket of major currencies, fell 0.31% to 99.492, its weakest level since June 5.The Japanese yen remained under pressure, weakening to as much as 160.150 per dollar, a level widely viewed by markets as a potential trigger for official intervention.Oil prices recorded their sharpest fall in weeks as traders welcomed the prospect of normalised crude flows through the Strait of Hormuz.Brent crude futures dropped more than 4% to around $84 a barrel, while US West Texas Intermediate crude fell over 5% to near $80 a barrel. Both benchmarks touched their lowest levels since March.Asian stocks rallyStock markets across Asia posted strong gains as investors cheered the easing of geopolitical tensions. Japan's Nikkei 225 jumped 5.4%, while South Korea's Kospi surged nearly 5%. Chinese blue-chip stocks gained 1.4%, Hong Kong's Hang Seng rose 0.6% and Australia's S&P/ASX 200 advanced 1.4%.MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1.5%. Wall Street futures also pointed higher, with S&P 500 futures up 1% and Dow Jones Industrial Average futures gaining 0.9%.Trump announces Hormuz reopeningTrump hailed the agreement as a major diplomatic breakthrough and announced the immediate reopening of the Strait of Hormuz."The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow! President DONALD J. TRUMP," he wrote on Truth Social.The announcement came hours before a UFC event hosted at the White House as part of celebrations marking Trump's 80th birthday. However, Trump also warned that military action could resume if negotiations over Iran's nuclear programme fail to produce a final agreement.Gold rises 2%Gold prices climbed 2% even as geopolitical tensions eased Spot gold rose to $4,304.11 an ounce, while US gold futures for August delivery advanced to $4,325.20. The precious metal touched its highest level since June 9 as investors weighed the implications of the preliminary agreement and the outlook for global interest rates.Iran signals cautious optimismIran welcomed the understanding with Washington but stressed that negotiations were not yet complete. Deputy foreign minister Kazem Gharibabadi said talks on a comprehensive agreement would continue over the next 60 days, with sanctions relief expected to be a key focus.He said Iran's obligations under the new understanding would come into effect on Friday, when the agreement is expected to be formally signed in Switzerland.According to Pakistani Prime Minister Shehbaz Sharif, the pact will be signed on Friday. Gharibabadi said Iran had secured all key demands in the draft agreement and that the text would be released after the signing ceremony."This memorandum of understanding does not mean trusting the enemy," he said. "We will monitor the implementation of US commitments," he added.Despite the strong market reaction, investors remain cautious as several key issues, including Iran's nuclear programme and the future of sanctions, still need to be resolved.The coming weeks are expected to determine whether the preliminary understanding evolves into a lasting agreement capable of restoring stability to global energy markets and reducing geopolitical risks.