U.S.-Iran Deal Lifts Markets as Oil Prices Fall

Markets surged on news of a preliminary U.S.-Iran agreement to end the Iran war, despite unresolved issues around Iran's nuclear program. The announcement sent oil prices to a three-month low, boosting airline and cruise stocks. Traders anticipate no immediate federal interest rate change despite inflation concerns.

Wall Street futures soared on Monday following a preliminary agreement between Washington and Tehran to end the Iran conflict and reopen the crucial Strait of Hormuz. This development led to a sharp decline in oil prices, reaching a three-month low.

Despite the positive news, critical issues like Iran's nuclear program remain unaddressed. The signing is expected in Switzerland on Friday. According to Max Kettner of HSBC, a credible agreement will positively impact risk assets, while setbacks may not be viewed as strongly negative.

Falling crude prices benefited airlines and cruise stocks, raising shares of United Airlines, Delta, and others. Meanwhile, analysts remain cautious about Brent crude prices. The focus now shifts to the Fed's policy meeting, with interest rates widely expected to remain unchanged.