A preliminary agreement between the US and Iran to reopen the Strait of Hormuz for commercial shipping has sent global markets into full risk-on mode. The Dow Jones hit an all-time high, Brent crude tumbled to around $83 per barrel, and Bitcoin climbed to roughly $66,500.
The deal, reached on June 15, extends a ceasefire by 60 days and targets a full reopening of the strait by June 19 or 20. For context, the Strait of Hormuz handles approximately 20% of global oil trade.
What the deal actually does
The agreement effectively pauses the US naval blockade that began in early March 2026, following escalating military tensions that included strikes on Iranian targets back in February. For roughly three and a half months, one of the world’s most important shipping lanes was functionally closed for commercial traffic.
The deal is preliminary. Important discussions around Iran’s nuclear program and proposed transit fees for vessels using the strait have been deliberately shelved for the 60-day negotiation window. Iran has floated charging fees for services rendered during the reopening.
