US President Donald Trump and Iranian President Ebrahim Raisi will sign a cease‑fire agreement on Friday that restores commercial traffic through the Strait of Hormuz. The pact follows weeks of naval skirmishes that threatened oil shipments from the Middle East, and it coincides with the opening day of the G7 leaders’ summit in Italy.

Market participants greeted the development with a modest rally in energy stocks, as analysts project a 1%‑2% lift in crude prices once the waterway reopens. The agreement also eases geopolitical risk premiums that had been baked into European bond yields, giving investors a clearer backdrop for the G7’s upcoming discussions on fiscal coordination and climate finance.

While the cease‑fire does not resolve the broader nuclear dispute, it removes the immediate flashpoint that could disrupt global trade flows. Traders will now watch how the G7 leverages the opening to press Tehran on verification mechanisms, a step that could shape the next round of sanctions and influence sovereign‑risk spreads across emerging markets.

The deal also offers a diplomatic win for US and Iran, whose strained relations have simmered since the 1979 embassy takeover. By securing passage for tanker traffic, both sides signal a willingness to separate commercial interests from political rivalry, a nuance that could temper volatility in the $2 trillion global oil market.