Markets Pause After Strong Week as Focus Shifts to Lasting Iran Deal – US Market Wrap

Global equities ended the week on a more cautious footing as initial relief over the interim US-Iran peace agreement gave way to questions about whether a durable long-term settlement can be achieved.

With US cash markets closed for the Juneteenth holiday, S&P 500 futures moved lower after the benchmark recorded its strongest weekly performance since late May. European stocks edged down 0.2%, while Asian equities slipped 0.3% from record highs. Markets in China, Hong Kong, and Taiwan were closed.

Attention turned to the diplomatic process after talks on a permanent agreement scheduled for Friday in Switzerland were delayed. The postponement followed overnight clashes between Israel and Hezbollah in Lebanon, highlighting the broader regional tensions that continue to complicate negotiations.

Later developments offered some encouragement, with Israel and Hezbollah agreeing to a ceasefire. Iran has made stability in Lebanon a key condition of its preliminary agreement with the United States, underscoring how interconnected the various regional conflicts have become.

Oil prices rebounded, with Brent crude rising 0.9% to above $80 a barrel, though it remained well below levels seen earlier in the conflict. Activity through the Strait of Hormuz appeared to slow again after a brief recovery in shipping flows, while Tehran said vessels transiting the waterway would require its permission, a reminder that risks to global energy supplies have not fully disappeared.