Oil plunges, markets surge on report U.S. and Iran near deal to end war as gas prices jump past $4.50
NBC News • • nation
Key Points:
- A report indicated the U.S. and Iran are nearing a one-page memorandum of understanding to end the war and reopen the Strait of Hormuz, prompting a sharp plunge in oil prices and surging global markets.
- Iran is reviewing the U.S. proposal and plans to communicate its assessment through mediator Pakistan, while Iran’s navy assured stable passage through the strait under new protocols.
- President Trump warned Iran to agree to terms or face intensified bombing, though he later said it was "too soon" to prepare for a peace deal signing, causing some market price rebounds.
- Oil prices dropped significantly on the news but remained elevated year-to-date, while U.S. stock futures, European markets, and bond yields reacted positively, signaling potential consumer relief on borrowing costs.
- The Strait of Hormuz remains largely closed to commercial shipping due to ongoing conflict, with only a few vessels crossing recently, contributing to a 40% increase in oil prices since the U.S.-Israeli war began.
