Stock futures were rallying Monday after the U.S. and Iran agreed on an interim peace deal.
President Trump and Pakistani negotiators said a deal would be signed on Friday. Trump said the Strait of Hormuz would be reopened the same day.
"The fizz is staying in markets this morning as after 107 days and a seemingly endless number of false dawns, we finally have a deal between the U.S. and Iran to end the war and open the Strait of Hormuz," said Deutsche Bank.
Oil prices fell following the agreement, calming market fears about high energy prices and inflation risk. Brent crude declined more than 5%, while West Texas Intermediate futures were down 6%.
If oil falls below $80 in the near term, it would remove any reason for the Federal Reserve to raise interest rates, Jefferies economist Mohit Kumar said.
