The United States and Iran are discussing a plan to open the Strait of Hormuz about 30 days after the two countries reach an agreement to end hostilities, sources said Monday. Once an agreement is reached, Iran would have a 30-day deadline to clear the strait of mines. The report also said that the ceasefire agreement reached in early April will be extended for 60 days. During this two-month ceasefire period, the two sides plan to negotiate on Iran’s nuclear program.
The U.S. dollar index opened lower and ended down 0.35% at 98.97; the yield on the benchmark 10-year U.S. bond closed at 4.563%, while the yield on the 2-year U.S. bond, which is sensitive to the Federal Reserve’s policy rate, closed at 4.132%.
Spot gold jumped higher and maintained a sideways trend during the day, eventually closing up 1.34% at $4,570.33 per ounce; spot silver eventually closed up 3.41% at $78.09 per ounce.
Market expectations for the reopening of the Strait of Hormuz pushed oil prices below $100 a barrel, even though both the U.S. and Iran downplayed the likelihood of a deal in the near future. wti crude ended down 6.91% at $90.29/bbl, while brent crude ended down 7.14% at $96.28/bbl.
U.S. stocks were closed for the day in observance of the Fallen Generals Memorial Day.