Overview
- President Donald Trump and Iranian officials announced a preliminary framework to end the war and reopen the Strait of Hormuz with a formal signing scheduled for June 19 in Switzerland.
- Global markets responded immediately with a broad risk‑on move that sent Brent and WTI down about 4–5 percent, gold higher, and major Asian and Indian indices sharply up in early trade on Monday.
- Indian benchmarks opened strongly because lower crude eases import bills and inflation pressure, which can improve corporate margins and benefit sectors such as airlines, consumer goods and autos.
- The rally’s durability is uncertain because Foreign Portfolio Investors have been net sellers in 2026 (about Rs 2.87 lakh crore withdrawn so far) and the outcome of the US Federal Reserve policy meeting this week could counter or amplify gains.
- Details of the agreement remain limited, so markets will watch implementation steps, navigation and freedom‑of‑shipping rules for the Strait of Hormuz, and whether the 60‑day window to settle outstanding issues leads to durable peace.