Gold Jumps 1.7% to $4,328 After US-Iran Interim Peace Deal
Updated
Updated · Bloomberg · Jun 18
Gold Jumps 1.7% to $4,328 After US-Iran Interim Peace Deal
3 articles · Updated · Bloomberg · Jun 18
Summary
$4,328 an ounce marked gold’s intraday high after US and Iranian officials electronically signed an interim peace agreement on Wednesday evening, wiping out the previous session’s decline.
The rebound came even as the Federal Reserve signaled a rate hike later this year, a normally bearish backdrop for non-yielding bullion.
The deal’s immediate market impact remained incomplete because it was still unclear whether the Strait of Hormuz had reopened.
Earlier reports said the 14-point accord extends a ceasefire by 60 days and had already pushed oil prices lower, easing inflation expectations across markets.
As a peace deal lowers oil prices, can gold's rally withstand the Federal Reserve's planned rate hikes?
The US-Iran deal promises open seas, but why are shipping experts still expressing extreme caution?
US-Iran Ceasefire Sends Gold Above $4,800, Oil Down 20%: Immediate and Long-Term Economic Fallout
Overview
On June 18, 2026, the United States and Iran announced a two-week ceasefire after intensive mediation by Pakistan, aiming to de-escalate regional tensions. The agreement is based on Iran’s 10-point plan, which calls for US troop withdrawals, comprehensive sanctions relief, and a framework for controlled passage through the vital Strait of Hormuz. The anticipated reopening of the Strait is expected to restore global oil flows and ease supply chain disruptions. However, the ceasefire remains fragile due to deep mistrust and unresolved issues, leaving markets and policymakers cautious about the durability of this diplomatic breakthrough.