The recent US-Iran draft agreement gave the broader market a major boost, and now institutional investors are expecting a formal deal to be reached during this final ceasefire extension.
A key outcome from these diplomatic talks is the clear expectation that the important Strait of Hormuz will reopen within 30 days. This breakthrough led to a sharp correction in energy markets, with WTI Crude Oil dropping by 7% during the holiday session.
The US Dollar also fell along with crude, as the war-related inflation premium and safe-haven demand quickly faded from the broader economic picture.
Cross-Asset Daily Performance, May 25, 2026 – Source: TradingView
Although today's price movements were dramatic, trading activity was lighter than usual because of global holiday closures.
Tomorrow, as traders return from the long weekend, expect much higher trading volumes and more decisive market moves as they respond to this important geopolitical development.
Safe Trades and Keep your eyes on the news!
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Daily FX Performance (16:14). May 25, 2026 – Courtesy of Finviz
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