Emerging-Market Stocks Hit Record High as Hormuz Shipping Resumes, Currencies Slip 0.3%
Updated
Updated · Bloomberg · Jun 19
Emerging-Market Stocks Hit Record High as Hormuz Shipping Resumes, Currencies Slip 0.3%
3 articles · Updated · Bloomberg · Jun 19
Summary
MSCI’s emerging-markets equity index touched a record high after rising as much as 0.8%, though it later gave back gains to trade little changed.
Shipping resumed in the Strait of Hormuz as the US-Iran interim peace deal took effect and Washington declared an end to its blockade off the strait.
Lower oil-price expectations helped lift risk appetite for developing-nation stocks, even as an MSCI gauge of emerging-market currencies fell 0.3%.
The move extends a broader global equity rally this week, with investors treating the truce as a near-term easing of a key geopolitical and energy-market risk.
With a 60-day truce but a permanent new toll, what happens to global markets when the US-Iran deal expires?
Is Iran's demand for yuan payments for Hormuz passage the tipping point that finally ends the petrodollar's global dominance?
Will Iran's new multi-million dollar toll on the Strait of Hormuz permanently reshape global trade and international law?
US-Iran Interim Peace Deal Reopens Hormuz, Sends Oil Prices Down 10% and Sparks Global Market Rally
Overview
The recent announcement of an interim peace deal between the United States and Iran, which includes reopening the Strait of Hormuz, has triggered an immediate and dramatic shift in global markets. As more details of the agreement emerged, oil prices plunged sharply—crude prices dropped by about 5% for two consecutive days, reaching a three-month low. This market reaction is directly linked to the expectation of increased oil supply as Iran resumes exports through the reopened strait. The prospect of greater supply and eased tensions has driven this swift decline in oil prices, highlighting the strong connection between geopolitical developments and market movements.