{"id":63402,"date":"2026-06-18T18:38:20","date_gmt":"2026-06-18T22:38:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-us-iran-peace-accord-and-reopening-of-strait-of-hormuz\/63402\/"},"modified":"2026-06-18T18:38:20","modified_gmt":"2026-06-18T22:38:20","slug":"global-markets-react-to-us-iran-peace-accord-and-reopening-of-strait-of-hormuz","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-us-iran-peace-accord-and-reopening-of-strait-of-hormuz\/63402\/","title":{"rendered":"Global Markets React to US-Iran Peace Accord and Reopening of Strait of Hormuz"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US and Iran sign a historic Memorandum of Understanding (MOU)<\/strong> to end their four-month conflict, leading to the <strong>immediate reopening of the Strait of Hormuz<\/strong> and the lifting of the US naval blockade.<\/li>\n<li><strong>Iraq\u2019s Oil Minister<\/strong> confirms oil fields are ready to resume production, though <strong>crude export recovery will be gradual<\/strong> and strictly contingent on continued safe passage through the Persian Gulf.<\/li>\n<li><strong>Vice President JD Vance<\/strong> issues a blunt warning to Israel, stating the US and Israel are &quot;not always aligned&quot; and urging the ally to &quot;wake up and smell the reality&quot; of its international isolation.<\/li>\n<li><strong>Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>)<\/strong> advances its crypto offerings with an updated SEC filing for its <strong>Ethereum Trust<\/strong>, setting a pricing benchmark of <strong>$1,794.44<\/strong> as of June 16.<\/li>\n<li><strong>South Korea\u2019s May PPI jumped 8.5% year-on-year<\/strong>, marking the highest producer inflation since the pandemic, driven by lingering energy costs and currency volatility.<\/li>\n<\/ul>\n<h2>Middle East Peace Accord Triggers Energy Market Shift<\/h2>\n<p>The global energy landscape shifted dramatically on Thursday as <strong>President Donald Trump<\/strong> and Iranian leadership finalized a <strong>Memorandum of Understanding (MOU)<\/strong> to terminate military operations. The agreement, signed in Versailles and Tehran, facilitates the <strong>instant reopening of the Strait of Hormuz<\/strong>, a critical artery for 20% of the world\u2019s oil supply. While the US has begun lifting its naval blockade, Iranian negotiator <strong>Mohammad Bagher Qalibaf<\/strong> warned that any breach of the agreement would meet a &quot;strong response,&quot; emphasizing that compliance is mandatory for the deal\u2019s 60-day technical negotiation window.<\/p>\n<p>Iraq, which saw its crude exports collapse by <strong>89%<\/strong> during the conflict, is preparing for a phased return to the market. Oil Minister <strong>Basim Mohammed<\/strong> stated that while fields are operational, the resumption of exports will be <strong>gradual<\/strong>. The State Organization for Marketing of Oil (SOMO) has already begun contacting customers to nominate tankers for loading at southern ports, though analysts warn that <em>market relief may be premature<\/em> until the 60-day peace framework proves stable.<\/p>\n<h2>Diplomatic Rifts and European Strategy<\/h2>\n<p>In Washington, Vice President <strong>JD Vance<\/strong> signaled a cooling of relations with Jerusalem, defending the Iran deal against Israeli criticism. Vance noted that the <strong>US and Israel are different countries with different needs<\/strong>, and suggested that Israel is &quot;deeply isolated&quot; and must recognize the US as its &quot;last remaining major ally.&quot; This rhetorical shift comes as the Trump administration prioritizes winding down a war that has rattled the global economy and sent <strong>fertilizer and energy prices<\/strong> soaring.<\/p>\n<p>Simultaneously, <strong>EU leaders<\/strong> gathered in Brussels to discuss reducing &quot;systemic&quot; reliance on <strong>China<\/strong>. According to <em>Politico<\/em>, the talks focused on the impact of low-cost Chinese exports on European industry and the potential for <strong>trade defense measures<\/strong>. While some member states like Germany remain cautious, a growing coalition led by France and Italy is pushing for more aggressive action to protect European manufacturing from state-subsidized Chinese competition.<\/p>\n<h2>Financial and Economic Indicators<\/h2>\n<p>In the financial sector, <strong>Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>)<\/strong> is moving closer to launching its spot <strong>Ethereum Trust<\/strong>. Updated filings with the SEC reveal the trust will track the <strong>CoinDesk Ether Benchmark<\/strong> and incorporate staking rewards into its Net Asset Value (NAV). The bank reported that seed creation baskets were purchased at <strong>$20.00 per share<\/strong> on June 15, with the underlying Ethereum (<a href=\"\/stock\/ETH\">ETH<\/a>) priced at <strong>$1,794.44<\/strong> on June 16.<\/p>\n<p>Economic data from Asia highlighted the lingering costs of the recent conflict. <strong>South Korea\u2019s Producer Price Index (PPI)<\/strong> rose <strong>0.8% month-on-month<\/strong> and <strong>8.5% year-on-year<\/strong> in May. This surge, the highest since July 2022, was fueled by a <strong>77.5% jump in coal and petroleum prices<\/strong>. While the month-on-month growth slowed from April\u2019s 2.5%, the data suggests that <em>inflationary pressures remain entrenched<\/em> in the manufacturing sector despite the recent diplomatic breakthroughs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US and Iran sign a historic Memorandum of Understanding (MOU) to end their four-month conflict, leading to the 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