Markets

Stock markets surged worldwide and oil prices fell sharply after the United States and Iran reached a tentative deal to extend their ceasefire and reopen the Strait of Hormuz. The S&P 500 rose 1.7%, the Dow Jones Industrial Average climbed to a record, and Brent crude fell back toward $83 per barrel — well below the $100-plus seen during the conflict — raising hopes of relief from war-driven inflation pressures.

Global oil prices have tumbled roughly 20% from their 2026 highs as markets grow more optimistic about a durable US-Iran ceasefire that would unlock shipping through the Strait of Hormuz. The de-escalation has eased the energy-driven inflation pressures that pushed central banks worldwide toward a more hawkish stance, though analysts caution that security concerns and crude loadings inside the Gulf remain fragile.

President Trump announced on June 14, 2026 that the US and Iran reached a framework agreement to end the more than 100-day war and reopen the Strait of Hormuz, with a formal signing set for June 19. Markets rallied sharply on the news: US crude futures settled almost 5% lower, the S&P 500 rose 1.65%, the Nasdaq jumped 3.07%, and the Dow closed at a record high, while Japan's Nikkei surged 5.5% and South Korea's Kospi rose as much as 5.7%. Oil nonetheless remains roughly 40% above where it began the year.

Following the US-Iran framework agreement, oil-storage facilities throughout the Gulf remain well-stocked and ready to offer immediate relief to markets, while thousands of engineers and technicians are already working to restore production and export infrastructure to pre-war levels, according to the Atlantic Council. However, energy analysts caution that a geopolitical risk premium will persist given deep mistrust among the parties and the significant drawdown of commercial and strategic inventories used to offset wartime supply losses.

Travel and leisure stocks were among the biggest winners in the market rally that followed the US-Iran peace framework, with Delta Air Lines, American Express, and Royal Caribbean Cruises leading gains on June 15. The surge reflects investor expectations that an end to the conflict, falling oil and jet fuel prices, and easing geopolitical uncertainty will revive global travel demand and reduce airline operating costs. The rally has direct implications for the travel insurance market, which had seen surging adoption during the conflict.

A worldwide risk-on rally swept markets on Monday after the United States and Iran confirmed an agreement on Sunday, June 14, to end nearly four months of war and reopen the Strait of Hormuz. Brent crude tumbled toward a three-month low below $84 a barrel, while Japan's Nikkei 225 surged 5.5%, South Korea's Kospi jumped as much as 5.7%, and European equities pushed to record highs led by banks and travel stocks. Bonds rallied, the dollar slipped to a two-week low, and gold and Bitcoin posted strong gains as investors unwound the geopolitical risk premium that had dominated trading since February.

President Trump said a deal to end the US-Iran war would be signed Sunday, June 14, sending global markets into a relief rally and pushing oil sharply lower. Brent crude fell about 3.3% to roughly $87 a barrel and US WTI dropped to about $85, with prices down nearly 9% over the month, though still well above the roughly $70 level seen before the war began in late February. Iran's foreign ministry cautioned the agreement still required government approval, leaving markets optimistic but watchful.

Japan's benchmark Nikkei 225 stock index surged to an all-time high in mid-June 2026, rising more than 3% in morning trading after closing at a record peak, as hopes for an end to the US-Iran war and a falling oil price boosted sentiment across Asian markets. The rally comes just days before the Bank of Japan is widely expected to raise interest rates to 1% on June 16 — a combination of improving geopolitical sentiment and confidence in Japan's monetary normalisation that has powered Japanese equities to historic levels.

US stocks traded mixed and oil prices fell on June 12, 2026 as Wall Street reacted to growing optimism over a tentative US-Iran peace deal that could lift oil sanctions and reopen the Strait of Hormuz. President Trump said he canceled planned strikes overnight, citing a 'very strong memorandum of understanding,' with a possible signing in Switzerland as soon as Sunday. Crude fell about 2% to near $85 per barrel, while SpaceX completed the largest IPO on record, raising $75 billion and closing up more than 19% on its debut.

The global catastrophe bond (cat bond) and insurance-linked securities (ILS) market is on track for its second-largest first-half issuance on record in 2026, driven by sustained demand for property catastrophe capacity, growing investor appetite for insurance risk, and favourable conditions at the June 1 mid-year reinsurance renewals. Over $3.2 billion in Florida-focused cat bonds alone were issued for 12 sponsors in the first five months of 2026, including three first-time cat bond issuers.