Oil prices plunged more than 5% to reach three-month lows on Monday and stock markets jumped after the United States and Iran reached an initial agreement on ending the Middle East conflict and reopening the vital Strait of Hormuz.
Details of the deal, which would ease inflationary pressures globally and lessen the need for higher interest rates by potentially allowing desperately needed oil and natural gas to reach the global market through the critical waterway, were not immediately released.
Iran signaled implementation would not start until the signing, which key mediator Pakistan said would take place Friday in Switzerland. But challenges immediately loomed, including Israel insisting it would hold onto land seized in Lebanon.
Brent crude futures for August delivery plummeted 5.3% on Monday to $82.73 a barrel, while WTI crude futures for July delivery were down 5.5% at $80.22.
"Ships of the World, start your engines. Let the oil flow!" Trump wrote on Sunday and declared that the "great deal" which is "now complete" would bring "peace and security to the whole region."
