The S&P 500 (SPX) is up by over 2% after the U.S. and Iran agreed to halt attacks for two weeks to allow for negotiations. As part of the ceasefire, Iran will allow ships that coordinate with Iranian armed forces to cross the Strait of Hormuz for two weeks.
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Trade QQQ with leverage“You must receive permission from Iranian Sepah navy for passing through the strait,” said the Iranian Navy in a radio message broadcast to ships. “If any vessel tries to transit without permission, will be destroyed.”
First Ships Cross Hormuz as Oil Prices Plunge
On Wednesday morning, the Greek-owned NJ Earth and the Liberia-owned Daytona Beach became the first ships to safely cross through Hormuz following the ceasefire. The potential for the normalization of the passageway has sent oil prices plummeting, with Brent crude oil futures (BZ) down by 16% at the time of writing.
On Friday, the U.S. and Iran will meet in Islamabad, Pakistan to negotiate a permanent end to the war. Iran seeks a fee of $2 million for each ship crossing through Hormuz as part of its 10 demands to President Trump.