{"id":62201,"date":"2026-05-21T13:38:29","date_gmt":"2026-05-21T17:38:29","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief\/62201\/"},"modified":"2026-05-21T13:38:29","modified_gmt":"2026-05-21T17:38:29","slug":"us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief\/62201\/","title":{"rendered":"US-Iran Reach Landmark Draft Agreement as Senate Adjourns; Fed Warns of Lagging Energy Relief"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief\/62201\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief\/62201\/#US-Iran_Diplomatic_Breakthrough_via_Pakistan\" >US-Iran Diplomatic Breakthrough via Pakistan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief\/62201\/#Fed_Cautions_on_Energy_Price_Lag\" >Fed Cautions on Energy Price Lag<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief\/62201\/#US_Senate_Adjourns_Amid_Budget_Gridlock\" >US Senate Adjourns Amid Budget Gridlock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief\/62201\/#TIPS_Auction_Signals_Inflation_Concerns\" >TIPS Auction Signals Inflation Concerns<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-iran-reach-landmark-draft-agreement-as-senate-adjourns-fed-warns-of-lagging-energy-relief\/62201\/#Political_Shifts_in_the_UK_and_Iran\" >Political Shifts in the UK and Iran<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>US and Iran reach a Pakistan-mediated draft agreement<\/strong> including an immediate ceasefire and the reopening of the <strong>Strait of Hormuz<\/strong>, a move expected to restore 20% of global oil and LNG transit.<\/li>\n<li><strong>The US Senate has adjourned until June<\/strong>, leaving a critical reconciliation bill unfinished due to internal GOP disputes over a <strong>$1.8 billion DOJ &quot;anti-weaponization&quot; fund<\/strong>.<\/li>\n<li><strong>Federal Reserve\u2019s Thomas Barkin<\/strong> cautioned that while the reopening of the Strait of Hormuz is a positive supply shock, it could take <strong>months for consumer gas prices to fall<\/strong>.<\/li>\n<li><strong>The 10-Year TIPS auction yield jumped to 2.169%<\/strong>, up significantly from 1.896%, reflecting <em>heightened inflation expectations<\/em> despite the diplomatic breakthrough.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"US-Iran_Diplomatic_Breakthrough_via_Pakistan\"><\/span>US-Iran Diplomatic Breakthrough via Pakistan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A major geopolitical shift occurred today as the <strong>United States and Iran reached a final draft agreement<\/strong> mediated by <strong>Pakistan<\/strong>. The deal, which is expected to be formally announced within hours, includes an <strong>immediate and comprehensive ceasefire<\/strong> on all fronts and a mutual undertaking to refrain from targeting critical infrastructure.<\/p>\n<p>Central to the agreement is the restoration of <strong>freedom of navigation in the Persian Gulf and the Strait of Hormuz<\/strong>. Under a joint monitoring mechanism, <strong>sanctions will be gradually lifted<\/strong> in exchange for Iran&#39;s compliance with nuclear and security terms. <em>Market participants are closely watching the timeline for the resumption of oil flows<\/em>, as the effective closure of the strait since February has severely tightened global energy markets.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fed_Cautions_on_Energy_Price_Lag\"><\/span>Fed Cautions on Energy Price Lag<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the optimism surrounding the reopening of the <strong>Strait of Hormuz<\/strong>, Federal Reserve Bank of Richmond President <strong>Thomas Barkin<\/strong> warned that relief at the pump may not be instantaneous. Barkin noted that even when the waterway is fully operational, it could take <strong>months for retail gas prices to decrease<\/strong> due to supply chain backlogs and inventory replenishment cycles.<\/p>\n<p>Oil prices showed volatility on the news; <strong>Brent Crude (<a href=\"\/stock\/BZ=F\">BZ=F<\/a>)<\/strong> initially dipped on the deal news but stabilized above <strong>$105 per barrel<\/strong> as traders weighed the diplomatic progress against record-low inventories. <strong>WTI Crude (<a href=\"\/stock\/CL=F\">CL=F<\/a>)<\/strong> hovered near <strong>$99 per barrel<\/strong>. <em>Analysts suggest that the Fed remains in a &quot;wait-and-see&quot; mode<\/em>, as persistent inflation and energy shocks continue to complicate the path for interest rate adjustments.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_Senate_Adjourns_Amid_Budget_Gridlock\"><\/span>US Senate Adjourns Amid Budget Gridlock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Domestic legislative progress hit a wall as <strong>Senate Majority Leader John Thune<\/strong> announced the Senate would go home until June, leaving the current reconciliation bill unfinished. The primary obstacle is the controversial <strong>$1.8 billion &quot;anti-weaponization&quot; fund<\/strong> within the Department of Justice, a provision that has drawn skepticism from both parties.<\/p>\n<p>Thune indicated that the <strong>House of Representatives<\/strong> is expected to follow suit soon, effectively pausing major fiscal policy negotiations for several weeks. This delay comes at a sensitive time for the economy, as <strong>Walmart (<a href=\"\/stock\/WMT\">WMT<\/a>)<\/strong> recently warned of softening consumer spending and <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> failed to lift broader market sentiment despite its own growth projections.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"TIPS_Auction_Signals_Inflation_Concerns\"><\/span>TIPS Auction Signals Inflation Concerns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>U.S. Treasury<\/strong> saw a significant rise in yields during today&#39;s <strong>10-Year TIPS sale<\/strong>, which cleared at a <strong>high yield of 2.169%<\/strong>. This is a sharp increase from the previous rate of <strong>1.896%<\/strong>, signaling that investors are demanding higher &quot;real&quot; returns to compensate for <em>sticky inflation<\/em>.<\/p>\n<p>The <strong>bid-to-cover ratio<\/strong> remained healthy at <strong>2.52<\/strong>, though <strong>indirect bidders<\/strong> (typically international buyers) took a smaller share of the auction at <strong>61.4%<\/strong> compared to the previous <strong>68.5%<\/strong>. The rise in real yields has put additional pressure on the <strong>Energy Select Sector SPDR Fund (<a href=\"\/stock\/XLE\">XLE<\/a>)<\/strong> and other interest-rate-sensitive assets as the market adjusts to a &quot;higher-for-longer&quot; real rate environment.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Political_Shifts_in_the_UK_and_Iran\"><\/span>Political Shifts in the UK and Iran<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In international political news, <strong>Luke Charters<\/strong> resigned as a <strong>Parliamentary Private Secretary (PPS)<\/strong> in the UK, stating that the Labour Party needs to be &quot;bolder with its ideas.&quot; Charters, the MP for York Outer, had been a rising figure in the Department for Business and Trade.<\/p>\n<p>Meanwhile, reports from <strong>Al Arabiya<\/strong> suggest an intensifying food crisis in <strong>Iran<\/strong>. President <strong>Masoud Pezeshkian<\/strong> is reportedly leading efforts to curb the <strong>Islamic Revolutionary Guard Corps&#39; (IRGC)<\/strong> influence over political and diplomatic decisions, a move that may have facilitated the recent breakthrough in negotiations with the West.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US and Iran reach a Pakistan-mediated draft agreement including an immediate ceasefire and the reopening of the Strait [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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