New York, June 15, 2026, 17:09 (EDT)
- Brent crude settled 4.76% lower at $83.17 a barrel. The drop came after the U.S. and Iran signed a memorandum of understanding to reopen the Strait of Hormuz.
- U.S. stocks rallied. The S&P 500 climbed 1.7%. The Dow ended at a new all-time high.
- Investors are waiting to see if Friday’s planned signing in Geneva brings any normalization to shipping and supply.
Indexes rose Monday as investors bet on a possible U.S.-Iran deal that could defuse tensions and get the Strait of Hormuz moving again. Stocks bounced after recent losses tied to inflation worries. Brent crude dropped $4.16, or 4.76%, to settle at $83.17. U.S. West Texas Intermediate fell $4.13, or 4.87%, ending the day at $80.75. Both crude benchmarks closed at their lowest since March 4, Reuters said in its oil market report. Reuters
Stocks climbed, tracking a drop in oil prices that offered some relief to companies and consumers facing higher fuel, freight, and production costs. The Dow Jones Industrial Average added 468.77 points to 51,671.03. The S&P 500 was up 122.83 at 7,554.29. The Nasdaq Composite moved higher by 795.10 points to 26,683.94, AP reported. Airlines and cruise lines were out front, both sectors sensitive to fuel swings. AP News
Peace deal remains out of reach as a draft heads for a Friday signing in Geneva, Reuters reported. Iran’s Mehr news agency said Hormuz could reopen inside 30 days, but only if Iranian terms are met. Traders are watching for any signals on when ships could really move again, if insurance will cover cargoes, and if a shaky truce will hold with nuclear talks in sight. “The peace framework is the clearest sign yet that both Washington and Iran want an off-ramp…but this is still a framework, not a final deal,” Charu Chanana, chief investment strategist at Saxo in Singapore, told Reuters, according to Investing. Investing
J.P. Morgan Asset Management’s Karen Ward told OilPrice.com crude’s drop could be a “massive tailwind” for global equities. Ward said cheaper oil could broaden the rally past tech stocks and help central banks hold off on more rate hikes. On Monday, the bond market moved that way. Reuters said U.S. Treasury yields fell as traders took falling oil as a signal inflation may be easing. Oilprice
Bearish tone sticks. Reuters reported more than 14 million barrels a day of oil is still offline. Getting production and refining back to pre-war levels could take weeks or even months. Neil Crosby at Sparta Commodities said the Gulf’s vessel supply chain and restarts won’t be easy to manage. He noted some shipowners may wait for insurers to clear safety before moving. Reuters
Stocks rallied on the Hormuz deal, with traders betting it’s positive for growth and risk assets. But plenty say the situation is unsettled. Attention shifts to the Geneva signing planned for Friday. A bigger test comes when actual oil and gas flows through Hormuz. Until then, the market move is pinned on expectations for cheaper energy to ease inflation, if supply remains steady.
