What are the key provisions of the U.S.-Iran memorandum of understanding (MoU) that caused oil prices to fall?

The U.S.-Iran MoU includes an immediate end to the war on all fronts (including Lebanon), full resumption of maritime traffic 'with no charge' in the Strait of Hormuz, lifting of the U.S. blockade of Iranian ports, waiving of U.S. sanctions on Iran, unfreezing of Iranian assets, and establishment of a $300 billion investment fund for Iran's post-war reconstruction.

How did the Federal Reserve's messaging under new Chair Kevin Warsh affect markets, and how did it compare in impact to the U.S.-Iran MoU?

The Fed’s hawkish tilt—signaled through its policy statement, press conference, and projections showing nine of 19 policymakers expecting a rate hike by end-2026—initially pushed up bond yields and triggered a Wall Street selloff, with the S&P 500 and Nasdaq down over 1% on Wednesday; however, markets quickly shrugged off this impact, as the U.S.-Iran MoU proved the 'bigger force moving markets', driving Brent crude to a three-and-a-half-month low and lifting Asian equities and Wall Street futures.

US-Iran MoU Drives Oil Prices Down Despite Hawkish Fed Signals

Jun 18, 2026

The Federal Reserve held interest rates steady, but a US-Iran memorandum of understanding drove Brent crude down to $78 per barrel by easing Strait of Hormuz supply concerns. Global equities rallied on the improved energy outlook.

reuters

2026-04-29

Asian Stocks to Fall as Higher Oil Hits Sentiment: Markets Wrap

2026-05-01

Saudi Arabia Set for Oil Windfall After Hormuz Boosts Prices

2026-05-14

Dollar-Oil Correlation Hits Record High Amid Iran Conflict

2026-05-14

EM Stocks Tumble Most in More Than a Month as Oil Jumps

2026-05-24

Hassett Says Ending Iran War May Create Room for Fed Rate Cut