{"id":63350,"date":"2026-06-17T23:38:12","date_gmt":"2026-06-18T03:38:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/euro-rebounds-as-us-iran-peace-deal-offsets-moscow-refinery-strike\/63350\/"},"modified":"2026-06-17T23:38:12","modified_gmt":"2026-06-18T03:38:12","slug":"euro-rebounds-as-us-iran-peace-deal-offsets-moscow-refinery-strike","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/euro-rebounds-as-us-iran-peace-deal-offsets-moscow-refinery-strike\/63350\/","title":{"rendered":"Euro Rebounds as US-Iran Peace Deal Offsets Moscow Refinery Strike"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The Euro (EUR) surged past the 1.1500 level<\/strong>, reaching as high as <strong>1.1617<\/strong>, following a landmark preliminary peace agreement between the <strong>United States<\/strong> and <strong>Iran<\/strong>.<\/li>\n<li><strong>Brent crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> plummeted nearly 5%<\/strong> to a three-month low near <strong>$83 per barrel<\/strong> as the deal paved the way for the reopening of the <strong>Strait of Hormuz<\/strong>.<\/li>\n<li><strong>A major Ukrainian drone strike<\/strong> hit the <strong>Gazprom Neft (<a href=\"\/stock\/SIBN\">SIBN<\/a>)<\/strong> oil refinery in <strong>Moscow<\/strong>, damaging a primary unit that accounts for <strong>53% of the plant&#39;s capacity<\/strong>.<\/li>\n<li><strong>The Federal Reserve<\/strong> held interest rates steady at <strong>3.5%\u20133.75%<\/strong> in the first meeting under new Chairman <strong>Kevin Warsh<\/strong>, signaling a hawkish stance focused on &quot;price stability.&quot;<\/li>\n<\/ul>\n<h2>Markets Rally on US-Iran Diplomatic Breakthrough<\/h2>\n<p>Global financial markets experienced a significant shift in sentiment as <strong>President Donald Trump<\/strong> and Iranian President <strong>Masoud Pezeshkian<\/strong> signed a <strong>Memorandum of Understanding (MoU)<\/strong> to end the conflict. The agreement includes a <strong>60-day ceasefire<\/strong> and the immediate removal of the U.S. naval blockade, allowing for the reopening of the <strong>Strait of Hormuz<\/strong>, a critical chokepoint for 20% of global oil supply.<\/p>\n<p>The news triggered a massive &quot;unwind&quot; of geopolitical risk hedges, sending the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> to record highs and weakening the <strong>US Dollar Index (DXY)<\/strong> to a two-week low of <strong>99.42<\/strong>. <em>Investors are pivoting toward riskier assets<\/em>, betting that the resolution of the energy crisis will ease global inflationary pressures that have plagued the economy throughout 2026.<\/p>\n<h2>Moscow Refinery Strike Threatens Russian Fuel Supply<\/h2>\n<p>While global oil prices fell on the Iran news, Russia&#39;s domestic energy infrastructure faced a severe blow. A Ukrainian long-range drone strike successfully targeted the <strong>Moscow Oil Refinery<\/strong>, the region&#39;s largest fuel supplier. <strong>Moscow Mayor Sergey Sobyanin<\/strong> confirmed the attack, which ignited a massive blaze and forced the facility to suspend operations.<\/p>\n<p>Industry sources indicate the strike damaged a critical <strong>primary refining unit<\/strong>, potentially cutting the plant&#39;s output by more than half. This escalation comes as Russian oil producer <strong>Tatneft (<a href=\"\/stock\/ATAD\">ATAD<\/a>)<\/strong> implemented nationwide fuel rationing, limiting gasoline purchases to <strong>20 liters per vehicle<\/strong> due to mounting shortages caused by a months-long campaign against Russian energy assets.<\/p>\n<h2>Fed Holds Rates in Warsh&#39;s Debut<\/h2>\n<p>In his first policy meeting as Chair of the <strong>Federal Reserve<\/strong>, <strong>Kevin Warsh<\/strong> oversaw a unanimous vote to maintain the federal funds rate at <strong>3.5% to 3.75%<\/strong>. Despite the cooling of Middle East tensions, the <strong>Federal Open Market Committee (FOMC)<\/strong> maintained a hawkish tone, warning that &quot;price stability&quot; remains the primary objective.<\/p>\n<p><em>Money markets have already priced in a potential rate hike by October<\/em>, as officials assess the long-term impact of the recent conflict on core inflation. The divergence between a cautious <strong>Fed<\/strong> and a hawkish <strong>European Central Bank (ECB)<\/strong>\u2014which recently raised rates to <strong>3%<\/strong>\u2014continues to provide a tailwind for the <strong>Euro<\/strong>, keeping the <strong>EUR\/USD<\/strong> pair well-supported above the <strong>1.1500<\/strong> psychological floor.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Euro (EUR) surged past the 1.1500 level, reaching as high as 1.1617, following a landmark preliminary peace [&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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