US-Iran News LIVE: Rupee set to climb past 95 per dollar supported by peace deal

Pakistan Prime Minister Shehbaz Sharif announced that a peace deal between the US and Iran has been reached, and it will be officially signed off in a ceremony in Switzerland on June 19.

In a post on X in the early hours of Monday, Sharif said, “Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and the Islamic Republic of Iran has been REACHED.”

On Monday, the Asian stock market joined the relief rally after US President Donald Trump hinted that a peace deal with Iran is complete.

Iran’s Deputy Foreign Minister Kazem Gharibabadi on Sunday (local time) said that lifting all sanctions on his country will be a priority during the 60-day negotiation period between Tehran and Washington after Friday’s expected signing of an agreement with the United States.

In an interview with the official Islamic Republic of Iran News Network, Gharibabadi said, “We have several issues to address. The first is the termination of all sanctions against the Islamic Republic of Iran.”

US President Donald Trump marked his 80th birthday on Sunday by hailing an initial agreement to end the war in Iran.

US President Donald Trump said Sunday that the peace deal with Iran was delayed “by a few hours” because of an Israeli strike on Beirut.

“It shook it up. It delayed the signing by a few hours. It was supposed to be now. Now it is scheduled for a few hours from now,” Trump said in a phone call to the Axios news outlet.

Trump fumed at Israeli Prime Minister Benjamin Netanyahu over the attack on Beirut, saying, “it is so bad — I couldn’t believe it. An hour before we are supposed to sign the deal.”

Using a string of expletives, Trump told Axios he raged at Netanyahu after Israel struck Beirut’s southern suburbs on Sunday, killing three people, in response to what it said was Hezbollah fire at northern Israel.

“Why did Bibi (Netanyahu) have to do a f***ing attack?” Trump told Axios. “I was so pissed off. I let him know. He has no fucking judgement. I let him know that.”

Tehran has insisted that any agreement to halt the war must include the parallel conflict in Lebanon, where Israel has been pursuing a campaign against the Iran-backed movement Hezbollah.

— AFP

The Indian rupee is likely to strengthen at Monday’s open after a U.S.-Iran peace deal knocked oil prices lower and spurred hopes that dollar inflows will return to Asia’s third-largest economy.

The rupee is expected to open in the 94.80-94.85 per dollar range, per traders, having settled at 95.11 on Friday. The rupee is set to surpass the highs it reached after the Reserve Bank of India’s policy announcement on June 5, which laid out a raft of measures to support the currency.

Asian equities and currencies advanced, while the dollar index and U.S. Treasury yields fell and oil prices tumbled after U.S. President Donald Trump and Iran’s deputy foreign minister said they had reached a deal to end the war and reopen the Strait of Hormuz.

Brent crude dived 4.5% to $83.40, the lowest level in more than three months.

The critical question for markets is the durability of the peace deal and, by extension, the sustainability of the drop in oil prices, a currency trader at a bank said.

— Reuters

Iranian media published details Monday of a 14-point draft MoU between Iran and the US laying out a proposed framework to end the war and move toward a final agreement.

The semi-official Mehr News Agency said the draft calls for an immediate and permanent halt to the war on all fronts, including Lebanon, the lifting of the US naval blockade against Iran, the reopening of the Strait of Hormuz and a 60-day negotiation period covering nuclear issues and sanctions relief.

According to Mehr, the draft calls for:

1. An immediate and permanent end to the war on all fronts, including Lebanon.

2. US commitment not to interfere in Iran’s internal affairs and to respect the sovereignty of the Islamic Republic.

3. US to withdraw its forces from around Iran and refrain from deploying additional troops to the region or imposing new sanctions during the negotiation period.

4. The full lifting of the US naval blockade against Iran within 30 days.

5. It also calls for reopening the Strait of Hormuz within 30 days under Iranian arrangements.

6. A monitoring mechanism to oversee implementation of the agreement.

7. Suspension of sanctions on Iranian oil sales, petrochemical products and derivatives while granting Tehran full access to the financial proceeds.

8. The release of $24 billion in frozen Iranian assets during the 60-day negotiations period, with half of the amount to be made available to Iran before the start of final talks.

9. The final agreement would include the full lifting of US primary and secondary sanctions as well as the termination of relevant UN Security Council and International Atomic Energy Agency Board of Governors resolutions.

11. A 60-day negotiation period to reach a final agreement focused on nuclear issues and sanctions relief.

12. It says Iran would reiterate its commitment under the Nuclear Non-Proliferation Treaty (NPT) not to produce nuclear weapons.

13. The US and its allies to present reconstruction plans for Iran worth at least $300 billion.

14. Mehr reported that final negotiations would not begin before half of Iran’s frozen assets are released, sanctions on Iranian oil are suspended and the naval blockade is lifted.

— Inputs from Turkish news agency Anadolu Agency (AA)

Australia PM Anthony Albanese welcomes US-Iran deal, due to be signed on Friday

The US and Iran needed more than two months of fitful, strained negotiations to agree on a deal to halt their fighting and reopen the Strait of Hormuz. Now comes the hard part.

The provisional agreement announced by the two sides on Sunday night — President Donald Trump’s 80th birthday — leaves a narrow window of 60 days to negotiate issues around Iran’s nuclear program that bedeviled his predecessors for years. The memorandum of understanding, which has yet to be released, will be formally signed on June 19.

That gap raised the possibility that details on the text remained unresolved and the signing could be derailed. Already, differences were emerging between the two sides in what may have actually been achieved, while the simmering conflict between Israel and Lebanon could also still lead to a breakdown.

Trump says this initial deal amounts to the start of a process that will lead to peace in the region. Skeptics of the deal argue it may end up being nothing more than a temporary reprieve given it’s not clear either side is ready to compromise on the thorniest issues — how much economic relief to give Iran, what to do about its nuclear program and how to address its ballistic missile program.

“It’s not implausible they could have a temporary deal to reopen the Strait,” said Michael O’Hanlon, director of foreign policy research at the Brookings Institution. “Beyond that, a comprehensive deal is not plausible now.”

— Bloomberg

A reopening or normalization of shipping through the Strait of Hormuz would provide significant relief for India, one of the world’s largest crude importers, by easing concerns over oil supplies, lowering freight costs and reducing pressure on inflation.

Supply of crude oil – the raw material for making fuels like petrol and diesel – and natural gas – the feedstock used to generate electricity, produce fertiliser, turned into CNG to run automobiles and piped to household kitchens for cooking – through the strait was disrupted since the start of Iran in the end of February. This triggered sharp increases in crude oil prices, shipping insurance premiums and freight rates.

Industry sources and analysts said the reopening and reduction in tensions would likely help stabilize global energy markets and improve the outlook for energy-importing nations such as India.

— PTI

The Indian rupee and bonds are set to get a lift this week, supported by a US–Iran peace deal, while oil price swings are expected to guide the currency’s direction.

The rupee heads into the new week with positive momentum after snapping a three-week winning streak and slipping marginally last week.

The currency is expected to climb well past 95 per US dollar at open on Monday, having settled at 95.11 on Friday.

The currency was buffeted last week by persistent dollar demand from oil companies and other importers, though likely intervention by the central bank and mounting expectations of a US-Iran peace deal helped cushion the downside.

Investors are also awaiting the U.S. Federal Reserve’s first policy decision under Chair Kevin Warsh.

— Reuters

High oil and gasoline prices and energy supply problems won’t be solved overnight, despite an agreement to end the Iran war and open the Strait of Hormuz announced Sunday.

It will likely take months before energy companies can resume operations to the point of meeting the world’s demand, according to energy experts. The slow pace of the process of shipping and refining crude oil, and doubts about the security of traveling through the strait mean the effect won’t be seen immediately, they said.

Ships loaded with crude oil have been stranded in the Persian Gulf for more than three months, unable to safely travel through the waterway, through which about a fifth of the world’s oil and gasoline supplies typically traveled before the war began.

“It’s going to take time for people to feel comfortable and for insurance to be in place … particularly to get people on the ground to restart some of these assets,” said Daniel Evans, global head of fuels and refining research at S&P Global Energy.

— AP

Stocks and Treasuries rallied while oil fell to a three-month low after the US and Iran reached a deal to reopen the Strait of Hormuz, easing concerns over energy-supply disruptions that have roiled markets.

A gauge of Asian shares jumped 2.8% in early trading, while S&P 500 futures were up 1%. The dollar declined against its major peers and Bitcoin climbed more than 2%. Brent crude fell more than 4% to under $84 a barrel.

“Markets have been waiting for this news for months, and the relief is already showing,” said Josh Gilbert, lead analyst for Asia Pacific and the Middle East at eToro Ltd., a multi-asset investment platform operator. “However, this is still a move of optimism, not certainty. The nerves won’t fully settle until the deal is signed, meaning investors should still err on the side of caution.”

— Bloomberg

An Indian liquefied natural gas (LNG) tanker that has been trapped in the Persian Gulf for over three months appears to be heading toward the Strait of Hormuz, just as the US and Iran say they have reached a deal to reopen the waterway.

Shipowners are working through the news and trying to understand the details of the agreement — which may not be available for days — meaning there is little observed traffic in and around the corridor in the early hours of Monday.

The Disha, though, is testing the waters.

The LNG carrier, under a long-term charter with an Indian state-owned importer, is north of the United Arab Emirates and is nearing Oman, according to ship-tracking data compiled by Bloomberg. The tanker picked up a shipment from Qatar’s Ras Laffan facility around March 1, according to the data.

— Bloomberg

Former Biden administration State Department spokesperson Matthew Miller said Trump had made important concessions to Iran to achieve the status quo that existed before he launched the war.

“We have no assurances the nuclear program will ever be addressed, but Iran has shown the world it can take the global economy hostage and get something from the U.S. in return,” said Miller.

Iran’s deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would be negotiated during a 60-day ceasefire period, including sanctions relief for Iran.

The fate of Iran’s nuclear program, another thorny issue, will also be addressed in those later talks, sources previously told Reuters.

— Reuters

Pakistan PM Shehbaz Sharif announced the peace deal in a post on his social media handles. The post read:

“Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.

The official signing ceremony will be on Friday, 19 June in Switzerland.

We would like to thank the United States of America and the Islamic Republic of Iran for their commitment to finding a diplomatic solution to the conflict. We would also like to extend our sincere appreciation to our brothers in this mediation effort, the great leadership of State of Qatar, for their support in reaching this agreement. I would also especially thank the visionary leadership of Kingdom of Saudi Arabia and Republic of Türkiye for their immense contributions in this regard.

With the agreement now in place, mediators will facilitate a series of meetings this week. These pre-implementation discussions will lay the foundation for the technical talks and the official signing ceremony.”

“We are clear that toll-free freedom of navigation must now be restored in the Strait of Hormuz… Iran must never have a nuclear weapon,” British Prime Minister Keir Starmer said as US and Iran signed a deal to end the war.

“Japan strongly hopes that free and safe navigation through the Strait of Hormuz will be ensured in practice, and that a final agreement on Iran’s nuclear issue and other matters will be reached as soon as possible,” Japanese Prime Minister Sanae Takaichi reacted to US and Iran signing a peace deal to end the war.

“We are prepared to lift relevant sanctions in response to clear, verifiable steps by Iran on its nuclear programme,” according to a joint statement from the leaders of the UK, France, Germany and Italy.

— Bloomberg

“What we’re going to be able to do is drive down the cost of energy, not just now but for the long term, and create a real engine of prosperity in the Middle East,” US Vice President JD Vance told Fox News.

He said that he planned to attend the signing of the peace deal, which was slated to take place in Geneva, and that it was possible Trump could also go.

— AFP