A U.S.-Iran agreement to reopen the Strait of Hormuz took effect immediately following an announcement by Pakistan, triggering a sharp drop in crude oil prices and a broad equity rally. The Strait carries roughly 20% of global seaborne oil, so any credible reopening removes one of the most significant tail-risk premiums embedded in energy markets. The speed of the move suggests markets had been pricing in meaningful disruption risk.

The setup now hinges on whether the deal holds and how fast tanker flows normalize — any sign of non-compliance or renewed tensions could quickly reprice crude back up. Energy equities face a headwind as the risk premium deflates, while transportation, airlines, and consumer-facing sectors stand to benefit from lower fuel costs. The next catalysts to watch are tanker traffic data, OPEC response commentary, and any diplomatic follow-through or breakdown.