The S&P 500 (SPX) reversed its losses on Thursday after Al Arabiya and the IRNA News Agency reported that the U.S. and Iran had agreed to a draft agreement to begin negotiations.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
As part of the agreement, the two sides will extend the ceasefire and pledge to refrain from targeting infrastructure. The deal would also guarantee freedom of navigation in the Persian Gulf and the Strait of Hormuz under a joint monitoring mechanism.
Sanctions Relief Tied to Compliance ahead of Nuclear Talks
Furthermore, the U.S. will gradually lift sanctions on Iran in exchange for its compliance with the deal. Negotiations on other outstanding issues, such as the future of Iran’s nuclear program and its stockpile of highly enriched uranium, will begin within seven days.
Earlier today, reports circulated that Iranian Supreme Leader Ayatollah Mojtaba Khamenei would refuse any request to transfer Iran’s uranium out of the country. However, a senior Iranian official later denied the claim and labeled it as “enemy propaganda.”