US-Iran peace deal sparks global market rally, oil falls

Global stock markets surged and oil prices tumbled after the United States and Iran reached a preliminary peace agreement, a breakthrough aimed at ending a three-month conflict and reopening the critical Strait of Hormuz. The announcement on June 15 triggered a powerful relief rally across equity markets, with major U.S. and European indices climbing to record highs as fears of a prolonged energy shock receded.

In the United States, the S&P 500 rose 1.7 percent, adding approximately $1.2 trillion in market value, while the technology-heavy Nasdaq Composite jumped about 3 percent. The Dow Jones Industrial Average also closed at a record high. In Europe, the pan-European STOXX 600 index rose 1.2 percent, reclaiming all its losses since the conflict began in late February and surpassing its previous record. The most dramatic shift occurred in energy markets, where Brent crude oil prices fell nearly 5 percent to around $83 a barrel, their lowest level since early March.

The preliminary accord centers on a ceasefire and the reopening of the Strait of Hormuz, a narrow waterway off Iran's coast that normally carries about one-fifth of the world's seaborne oil and a significant portion...