US-Iran peace deal lifts Sensex as Brent slips 5%

What changed overnight for global markets

Global stock markets moved higher on Monday after the United States and Iran said they had reached a framework agreement to extend a ceasefire and reopen the Strait of Hormuz. The news eased investor concerns around a prolonged disruption to energy supplies and global trade routes. Oil prices fell sharply, supporting the view that near-term inflation pressures could cool if shipping remains uninterrupted. The agreement also triggered a shift in risk appetite across regions, with equities rising and safe-haven positioning being reassessed.

The Strait of Hormuz and why it matters

The Strait of Hormuz is described in the reports as one of the world’s most important energy corridors. Markets have treated the route as a key risk point during the conflict, with the possibility of a prolonged closure seen as a threat to crude supply flows. The tentative deal focuses on reopening shipping and ending the US naval blockade of Iran, according to multiple updates. Investors responded to the potential removal of a major logistical bottleneck for energy trade.

Wall Street opens higher as oil retreats

US equities climbed in early trade, helped by the drop in crude. The S&P 500 rose 1.5%, while the Dow Jones Industrial Average gained 638 points, or 1.2%, as of 9:35 a.m. Eastern time. The Nasdaq Composite climbed 2.3%, according to AP. Futures were also higher earlier in the session, with S&P 500 futures up 1% and Dow futures up 0.9%, pointing to a firm start.

Crude prices fall back toward early-March levels

The sharpest immediate market reaction was in oil. Brent crude fell 4.8% to $13.18 a barrel, described as a return to levels seen in early March. Another update put Brent down $1.08 at $13.25 a barrel, and a separate market snapshot cited Brent near $13.32, reinforcing the scale of the move. WTI crude was also reported to be down over 5% to $10.62 a barrel. Reports noted both benchmarks touched their lowest levels since March.

Asia-Pacific stocks rally on easing geopolitical risk

Asian equities posted broad gains after the announcement. Japan’s Nikkei 225 jumped 5.4%, while South Korea’s Kospi surged nearly 5%. Chinese blue-chip stocks gained 1.4% and Hong Kong’s Hang Seng rose 0.6%. Australia’s S&P/ASX 200 advanced 1.4%, and MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.5%. The moves reflected a stronger appetite for risk as investors priced in lower odds of further near-term escalation.

India joins the emerging-market rally

Indian benchmarks rose sharply in early trade as crude prices fell and the ceasefire framework improved sentiment. The BSE Sensex surged 1,110.70 points or 1.47% to 76,638.65, while the Nifty climbed 330.40 points or 1.40%. Another update cited the Sensex up about 1.50% to 76,664 and the Nifty up about 1.4% at 23,955, with early trade also showing the Nifty moving closer to the 24,000 mark.

Oil-sensitive shares led the move. InterGlobe Aviation (IndiGo) and state-run oil marketing companies BPCL, HPCL and IOC were reported to be up roughly 3-4% in early trade. Banking stocks also logged strong gains, and shares of tyre, chemicals and paints makers were also cited among the gainers.

Europe opens higher; miners and travel lead

European shares also advanced at the open, supported by the same risk-on tone. The Stoxx 600 index was reported up about 0.9% to 639, surpassing its previous record set just before the Iran conflict began. The rise was described as being driven largely by mining and travel sector stocks, while oil companies’ shares were lower as crude prices fell. In the UK, the FTSE 100 rose by 99 points, nearly 1%, to 10,570, its highest level since April 21.

Currency and gold signals: dollar dips, gold rises

Currency markets reflected the move into riskier assets. The US dollar fell to its weakest level since June 5 and was also described as being at a 10-day low against major currencies. Gold prices climbed even as stocks rallied, as traders weighed the implications of the preliminary agreement and the path of future interest rates. The combination pointed to a market that was optimistic on reduced conflict risk, but still cautious on the broader macro outlook.

What officials said and what comes next

US President Donald Trump confirmed the preliminary agreement and announced the immediate reopening of the Strait of Hormuz, along with an end to the US naval blockade affecting Iranian ports. US and Iranian officials said on Sunday that they had agreed on a framework to end the war, lift the blockade and restore shipping through the strait. One report said the text of the memorandum would be released following a signing ceremony in Switzerland on Friday. Markets have treated these steps as important milestones, while also watching whether implementation holds.

Key market moves at a glance

Timeline of the peace-framework headlines

Why the move matters for India and global risk appetite

For India, the focus quickly turned to crude because the country imports the majority of its oil needs, as noted in the reports. A sharp fall in Brent can reduce pressure on inflation, support the current account balance, and help the rupee, although the durability of those benefits depends on whether oil stays lower. In equities, the immediate transmission was visible in gains for oil marketing companies and other oil-sensitive names, alongside a broader rise in the Sensex and Nifty.

Globally, the market reaction captured a shift from conflict-driven pricing to implementation-driven pricing. Analysts cited in the reports said global trade could begin stabilising within weeks if shipping routes remain open and the agreement holds, while longer-term recovery depends on implementation, sanctions policy and regional security developments. Those conditions, rather than the initial announcement alone, are likely to guide the next leg of moves across oil, currencies and equities.

Conclusion

Markets worldwide rose and crude prices fell after the US and Iran announced a tentative ceasefire framework that includes reopening the Strait of Hormuz and ending the US naval blockade. India’s Sensex and Nifty joined the rally, with oil-sensitive stocks among the notable gainers as Brent slipped to around $13 a barrel. The next key checkpoint flagged in reports is the expected signing ceremony in Switzerland on Friday, when the memorandum text is expected to be released.