Good morning. Here’s what happened overnight and what you need to know this weekend.
1.
Right of passage: US President Donald Trump said Iran has agreed to suspend its nuclear program indefinitely and that it will not receive any frozen funds from the US, telling Bloomberg that a deal to end the war is mostly complete and that talks over a lasting agreement will “probably” be held this weekend in Pakistan. A Trump administration official told the WSJ the talks will likely take place on Monday. Trump told Reuters the US plans to enter Iran at a “leisurely pace” to recover its enriched uranium and relocate it to the States. Trump told CBS that removing enriched uranium from Iran would not involve US ground troops. Iran has yet to comment on a peace deal, including on the issue of its nuclear program. The comments came after Iran’s Foreign Minister Abbas Araghchi confirmed that the country had agreed to open the Strait of Hormuz, while the Islamic Revolutionary Guard Corps said it would decide which vessels are allowed to cross the Strait. Responding to Araghchi’s announcement that the Strait would be opened “for the remaining period of ceasefire” between Lebanon and Israel, Trump said the US naval blockade of Iranian ports will remain in effect, “as it pertains to Iran, until an agreement between Washington and Tehran is ‘100% COMPLETE’.” Trump added that Tehran “has removed, or is removing” all mines from the Strait “with the help of the U.S.A.” A Malta-flagged cruise ship became the first passenger vessel to move through the Strait on Friday, while at least eight oil tankers raced toward the passage in hopes of passing through following the re-opening. Prime Minister Anthony Albanese joined more than 40 world leaders in a virtual meeting on Friday, which did not include Trump, to discuss reopening the Hormuz Strait. (Bloomberg)(Reuters)(CBS)(WSJ)
2.
Strong finish: US stocks surged on Friday after Iran confirmed the Strait of Hormuz would be “completely open” for the remainder of the ceasefire agreed between Israel and Lebanon. The Dow Jones rose by 869 points, or 1.8%, while the S&P 500 rose 1.2% to cross 7,100 for the first time. The Nasdaq gained 1.5%. Both the S&P 500 and Nasdaq notched intraday highs. The renewed hope for a resolution in the Middle East saw US stocks close out their third consecutive week of gains. Meanwhile, oil prices plunged on the news as fears about deepening supply disruption eased. Brent crude futures declined 9% to settle at USD90.38 per barrel, while West Texas Intermediate futures plummeted almost 12%, settling at USD83.85 per barrel. Investors placed a massive USD760 million bet on falling oil prices around 20 minutes before Iran’s Foreign Minister announced the Hormuz Strait was open, Reuters reported, citing LSEG data. (CNBC)(FT)(WSJ)(Bloomberg)(Reuters)
