US equity futures climbed while oil prices slumped and the dollar weakened following President Donald Trump's announcement that the US and Iran had reached a peace agreement. The deal centers on reopening the Strait of Hormuz, a vital maritime passage for global oil shipments that has been a source of geopolitical tension.

Pakistani mediators facilitated the negotiations between the two nations, helping broker what could represent a significant de-escalation in Middle Eastern tensions. The Strait of Hormuz handles roughly one-third of the world's seaborne oil trade, making its status a critical factor for energy markets and global supply chains.

Oil markets reacted swiftly to the news, with crude futures dropping on expectations that the agreement would ease supply concerns. Energy traders had been pricing in risks associated with potential shipping disruptions through this narrow 21-mile-wide waterway connecting the Persian Gulf to the Arabian Sea.

Equity markets rose as investors priced in reduced geopolitical risk premium, while the dollar's decline reflected expectations that lower oil prices could benefit other economies more than the US. The agreement's implementation remains the key near-term focus for traders.