{"id":62455,"date":"2026-05-28T10:38:18","date_gmt":"2026-05-28T14:38:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/u-s-and-iran-reach-tentative-60-day-truce-extension-markets-react-as-trump-considers-final-approval\/62455\/"},"modified":"2026-05-28T10:38:18","modified_gmt":"2026-05-28T14:38:18","slug":"u-s-and-iran-reach-tentative-60-day-truce-extension-markets-react-as-trump-considers-final-approval","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/u-s-and-iran-reach-tentative-60-day-truce-extension-markets-react-as-trump-considers-final-approval\/62455\/","title":{"rendered":"U.S. and Iran Reach Tentative 60-Day Truce Extension; Markets React as Trump Considers Final Approval"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The U.S. and Iran have reached a 60-day Memorandum of Understanding (MOU)<\/strong> to extend their current truce, though the deal awaits final approval from <strong>President Trump<\/strong>, who has requested several days to review the terms.<\/li>\n<li><strong>Spot <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> reversed losses to trade up 0.2% at $4,464.09\/oz<\/strong> following the news, while <strong>Crude Oil prices turned negative<\/strong> on expectations of reduced geopolitical friction in the Persian Gulf.<\/li>\n<li><strong>U.S. New Home Sales for April missed estimates significantly<\/strong>, coming in at <strong>622K<\/strong> against an expected <strong>660K<\/strong>, signaling a cooling in the domestic housing market.<\/li>\n<li><strong>New York Fed President John Williams<\/strong> warned that near-term <strong>inflation remains sticky at approximately 4%<\/strong>, with core inflation at 3%, citing Middle East tensions and tariffs as primary drivers.<\/li>\n<li><strong>The Bank of Canada (BOC)<\/strong> issued a warning in its Financial Stability Report, noting that <strong>rising asset valuations<\/strong> and vulnerabilities in non-bank financial intermediaries have heightened the risk of a <strong>&quot;sharp market correction.&quot;<\/strong><\/li>\n<\/ul>\n<h2>Geopolitical Breakthrough: U.S.-Iran 60-Day Extension<\/h2>\n<p>The <strong>U.S. and Iran<\/strong> have reportedly reached a deal on a <strong>60-day Memorandum of Understanding (MOU)<\/strong> to extend their existing truce, according to reports from <em>Axios<\/em>. While the agreement has been reached at the official level, <strong>President Trump<\/strong> has not yet given his final signature, reportedly asking for a few days to deliberate on the final terms.<\/p>\n<p>The deal includes specific maritime security provisions, requiring <strong>Iran to remove mines from the Strait of Hormuz within 30 days<\/strong>. U.S. officials stated the agreement is intended to ensure <strong>&quot;no tolls and no harassment&quot;<\/strong> of commercial vessels in the region. Iranian lawmakers have signaled satisfaction with the talks, claiming that the majority of <strong>Iranian proposals were accepted<\/strong> during the negotiations.<\/p>\n<h2>Market Reaction: Gold Gains as Oil Slips<\/h2>\n<p>Commodity markets reacted sharply to the de-escalation news. <strong>Spot Gold<\/strong> erased earlier losses to turn positive, climbing to <strong>$4,464.09 per ounce<\/strong>. Conversely, <strong>Crude Oil prices turned negative<\/strong> as the prospect of a stabilized Strait of Hormuz eased supply disruption fears that had previously baked a &quot;war premium&quot; into energy prices.<\/p>\n<p>In equity markets, the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> opened lower, dropping <strong>234.78 points (0.46%) to 50,409.50<\/strong>. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> remained largely flat, while the <strong>Nasdaq Composite<\/strong> saw a marginal gain of <strong>0.03%<\/strong> in early trading.<\/p>\n<h2>Central Bank Warnings and Economic Data<\/h2>\n<p><strong>New York Fed President John Williams<\/strong> emphasized a data-dependent path for monetary policy, noting that <strong>inflation is likely to peak<\/strong> in the coming months. Williams highlighted that the <strong>Middle East conflict<\/strong> has boosted energy costs and impacted consumer spending, though he noted the U.S. economy is currently less sensitive to oil shocks than in previous decades.<\/p>\n<p>Simultaneously, the <strong>Bank of Canada<\/strong> released its Financial Stability Report, cautioning that the financial system remains strong but faces growing &quot;weaknesses.&quot; The BOC specifically pointed to <strong>non-bank financial intermediaries<\/strong> and warned that a series of shocks could trigger a significant drop in investor confidence, affecting main funding markets.<\/p>\n<h2>Corporate Developments and Tech Innovation<\/h2>\n<p>In the technology sector, <strong>Microsoft (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong> announced plans to debut new AI models specialized for specific tasks, including a <strong>new coding model<\/strong> set for release next week. Meanwhile, AI hardware startup <strong>Groq<\/strong> is reportedly raising <strong>$650 million<\/strong> to fund its next phase of growth.<\/p>\n<p>In other corporate news, <strong>Unilever (<a href=\"\/stock\/UL\">UL<\/a>)<\/strong> is set to build a new research facility in the U.S., according to the <em>Wall Street Journal<\/em>. In the crypto space, <strong>Grayscale<\/strong> has reportedly delayed its IPO plans as the recent boom in digital asset listings begins to lose momentum.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The U.S. and Iran have reached a 60-day Memorandum of Understanding (MOU) to extend their current truce, though 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