{"id":63246,"date":"2026-06-16T08:38:19","date_gmt":"2026-06-16T12:38:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-announces-iran-peace-deal-and-hormuz-reopening-us-economic-data-misses-estimates\/63246\/"},"modified":"2026-06-16T08:38:19","modified_gmt":"2026-06-16T12:38:19","slug":"trump-announces-iran-peace-deal-and-hormuz-reopening-us-economic-data-misses-estimates","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-announces-iran-peace-deal-and-hormuz-reopening-us-economic-data-misses-estimates\/63246\/","title":{"rendered":"Trump Announces Iran Peace Deal and Hormuz Reopening; US Economic Data Misses Estimates"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>President Trump announced a landmark deal with Iran<\/strong> to end hostilities and <strong>fully reopen the Strait of Hormuz by Friday<\/strong>, leading to a sharp drop in <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> and a record high for the <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average.<\/li>\n<li><strong>US Housing Starts plunged 15.4% in April<\/strong> to a seasonally adjusted annual rate of <strong>1.177 million units<\/strong>, significantly missing the consensus estimate of 1.430 million as high mortgage rates continue to stifle construction.<\/li>\n<li><strong>Import prices surged 1.9% in May<\/strong>, nearly double the 1.0% estimate, driven by a spike in fuel costs and suggesting persistent inflationary pressure despite the recent diplomatic breakthrough.<\/li>\n<li><strong>Yum! Brands (<a href=\"\/stock\/YUM\">YUM<\/a>) reached a $2.7 billion agreement to sell Pizza Hut<\/strong>, offloading the struggling chain to private equity firm LongRange Capital and <strong>Yum China (<a href=\"\/stock\/YUMC\">YUMC<\/a>)<\/strong>.<\/li>\n<li><strong>Huntsman (<a href=\"\/stock\/HUN\">HUN<\/a>) and Olin (<a href=\"\/stock\/OLN\">OLN<\/a>) announced an all-stock &quot;merger of equals&quot;<\/strong> to create a $12 billion chemicals giant named <strong>OlinHuntsman<\/strong>, though Huntsman shares fell 5.8% on the deal&#39;s structure.<\/li>\n<\/ul>\n<h2>Geopolitical Breakthrough: Iran Deal and Energy Markets<\/h2>\n<p>President <strong>Donald Trump<\/strong> declared on Tuesday that the United States has reached a memorandum of understanding with <strong>Iran<\/strong> to end the recent Middle East conflict. The deal, which is slated for a formal signing in Switzerland this Friday, includes a 60-day ceasefire and the permanent reopening of the <strong>Strait of Hormuz<\/strong>. Trump noted that ships, many loaded with oil, have already begun moving through the vital waterway, which he promised will be &quot;toll-free&quot; once fully operational.<\/p>\n<p>The diplomatic resolution has immediate implications for global energy security. <strong>Dubai crude oil physical premia<\/strong> turned negative for the first time since early 2026, falling to minus 33 cents a barrel from a peak of $65 in mid-March. Trump also signaled that the increased flow of oil would soon allow the U.S. to <strong>increase sanctions on Russia<\/strong>, targeting their &quot;shadow fleet&quot; as global supply constraints ease.<\/p>\n<h2>US Economic Indicators: Housing Slump and Inflation Heat<\/h2>\n<p>Fresh data from the <strong>U.S. Census Bureau<\/strong> revealed a significant cooling in the housing market. <strong>Housing Starts<\/strong> for April fell to <strong>1.177 million<\/strong>, a 15.4% monthly decline that far exceeded the 2.0% drop anticipated by economists. <strong>Building Permits<\/strong> also ticked down 0.7% to 1.413 million, reflecting a cautious outlook among developers facing elevated financing costs and labor shortages.<\/p>\n<p>On the inflation front, the <strong>U.S. Bureau of Labor Statistics<\/strong> reported that the <strong>Import Price Index<\/strong> rose 1.9% in May. While the &quot;Ex-Petroleum&quot; index rose a more modest 0.8%, the year-over-year import inflation rate hit 6.7%, well above the 5.7% estimate. This data, combined with a <strong>New York Fed Services Business Activity<\/strong> reading of -10.1, paints a picture of an economy grappling with &quot;stagflationary&quot; signals\u2014slowing activity paired with stubborn price increases.<\/p>\n<h2>Corporate M&amp;A: Pizza Hut Sale and Chemical Merger<\/h2>\n<p>In the consumer sector, <strong>Yum! Brands (<a href=\"\/stock\/YUM\">YUM<\/a>)<\/strong> is divesting its <strong>Pizza Hut<\/strong> division in two separate transactions totaling <strong>$2.7 billion<\/strong>. <strong>Yum China (<a href=\"\/stock\/YUMC\">YUMC<\/a>)<\/strong> will acquire the mainland China operations for $1.2 billion, while <strong>LongRange Capital<\/strong> will take over the remaining global business for $1.5 billion. The move allows Yum! to focus on its higher-growth <strong>KFC<\/strong> and <strong>Taco Bell<\/strong> brands, while simultaneously authorizing a new <strong>$4 billion share buyback program<\/strong>.<\/p>\n<p>The industrial sector saw a massive consolidation as <strong>Huntsman (<a href=\"\/stock\/HUN\">HUN<\/a>)<\/strong> and <strong>Olin (<a href=\"\/stock\/OLN\">OLN<\/a>)<\/strong> agreed to merge. The new entity, <strong>OlinHuntsman<\/strong>, expects to realize over <strong>$400 million in cost synergies<\/strong>. However, Huntsman shares dropped 5.8% in <a href=\"https:\/\/stockmarketwatch.com\/movers\/premarket\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Premarket Movers\">pre-market trading<\/a> as investors reacted to the all-stock nature of the deal. Elsewhere, <strong>SpaceX (<a href=\"\/stock\/SPCX\">SPCX<\/a>)<\/strong> extended its IPO gains following news that it will acquire AI firm <strong>Anysphere<\/strong> for <strong>$60 billion<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways President Trump announced a landmark deal with Iran to end hostilities and fully reopen the Strait of Hormuz 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