The reaction of international markets following the signing of the framework agreement between the United States and Iran to end the Middle East war was direct.
Oil prices moved downwards, with Brent forming under $79 a barrel, while the stock markets reacted positively, as investors anticipate a decline in geopolitical risk, reopening the Straits of Hormuz and gradually returning an Iranian bid to the market.
Fall in oil prices
In Thursday's first trades June 18, Brent retreated by 1.12%, at $78.66 a barrel, while the American WTI recorded losses of 1.28%, at $75.81.
The fall is attributed to the assessment that the agreement significantly reduces the so-called "war premium" that had been incorporated into oil prices due to the Middle East conflict and the risks to navigation in the Straits of Hormuz.
The market also discounts that the gradual lifting of restrictions on Iranian oil exports may lead to an increase in supply, provided the agreement is implemented without interference.
Positive climate in markets
At the same time, international stock markets moved up, as investors welcomed the agreement as a sign of a deescalation of the crisis.
Japanese Nikkei 225 recorded an increase of about 5%, reaching historically high levels, while South Korean Kospi was strengthened by 5.2%. The Topix index in Japan also scored, while the Hong Kong stock market was also positively moved. Analysts estimate that the prospect of return of Iranian oil exports and the restoration of navigation in Ormuz significantly reduces the risk of disruptions in the global supply chain and energy markets
The reduction in energy prices is considered positive for companies, airlines, transport and economies that had been under pressure from increased energy costs.
The signature in Versailles
US President Donald Trump signed a copy of the US - Iran agreement during dinner at the Palace of Versailles, after the end of the G7 summit, American officials confirmed.
According to the same information, the United States subsequently sent the Iranians a photograph of the signed document.
🚨 President Donald J. Trump has SIGNED the Iran Memorandum of Understanding at Versailles in France. 🇺🇸 pic.twitter. Com/JQ6qlbvFAF— The White House (@WhiteHouse) June 17, 2026
Leaving the Palace of Versailles, Trump personally confirmed the signing to reporters. "Signed," he said. "I signed it in Versailles, I just signed it".
.@POTUS departs the Palace of Versailles after joining President Macron and First Lady Brigitte for dinner:
“Did you sign the MOU?”
“It’s signed, yes... I signed it in Versailles. ‘ pic.twitter.com/jl5Uzexb7Z— Rapid Response 47 (@RapidResponse47) June 17, 2026
"This was not easy," said President Donald Trump at the signing of the US-Iran Memorandum tonight at the Palace of Versailles, according to a video published by French President Emmanuel Macron, who hosted the American president at dinner.
Macron, in a post in X accompanying the video, said the 14-point plan "opens the way for lasting peace" and will lead to a reduction in energy prices.
Le Président Trump a signé ce soir à Versailles l’accord entre l’Iran et les États-Unis.
Cet accord ouvre la voie à une paix Durable et permet la réouverture du détroit d’Ormuz.
C’est un pas important dans la bonne direction pour nos compatriotes... pic.twitter. com/b1XgZrBv0m— Emmanuel Macron (@EmmanuelMacron) June 18, 2026
What had preceded digital signatures
Earlier this week, a senior U.S. government official had stated that Trump and Vice President J.D. Vance had digitally signed the memorandum of understanding with Iran, while from an Iranian point of view the document had been signed electronically by Iranian Parliament President, Mohammad Bager Galibaf.
However, another American official clarified on Wednesday that Trump now signed a printed copy of the deal and suggested that he had not previously signed the document digitally, but had just witnessed his signature by the vice president as a witness.
"On Sunday the memorandum was signed digitally by Vice President Vance and the Speaker of the Parliament of Iran Galibaf, in the presence of President Trump. It has now been signed by President Trump and President Masud Pezeskian," he said features.
Confirmation by Tehran
Iranian diplomacy confirmed that the agreement with the United States was signed to end the Middle East war.
Iran's foreign ministry spokesman, Esmail Bagay, said the text of the "Islamabad Understanding Memorandum" was finalised with the signatures of the presidents of the two countries, Donald Trump and Masud Pezeskian.
📸 Iran’s President Pezeshkian and his US counterpart Trump signed the MoU between Tehran and Washington digitally and remotely.
Follow: https://t.co/7Dg3b41hTx pic.twitter. com/8GtQFZhuZ0— PressTV Extra (@PresstvExtra) June 18, 2026
According to him, the agreement was signed electronically and can now begin "the test of its implementation".
Open Ormuz and lift the blockade
Pakistan Prime Minister Sabaz Sharif said in the early morning hours that signing the agreement means that the Straits of Hormuz will reopen completely "without delay" and that the blockade of Iranian ports by the American armed forces will be lifted "directly".
In his post on the X platform, Sharif said that the "Memorandum of Understanding Islamabad" comes into effect "and that, "as a first step, the Islamic Republic will open without delay the Strait of Hormuz and the US will immediately proceed to lifting the naval blockade.".
I am honored to announce that the historical ‘Islamabad Memorandum of Understanding’ has been electrically signed today between the United States of America and the Islamic Republic of Iran. The Memorandum has been signed by honorable Presidents of both the counties and also... — Shehbaz Sharif (@CMSHABaz) June 18, 2026
He confirmed that a ceremony will be held in Switzerland on Friday to commemorate the important development and to begin the technical talks between the parties.
The transit fees after 60 days
Iran reiterated its intention to begin collecting fees for services to be provided to ships crossing the Straits of Hormuz, after the 60-day period during which crossings will be made free.
Mohammad Bager Galibaf, chief negotiator and president of the Iranian Parliament, told state television that the alley "will not return to the pre-war situation".
"Iran has a sovereign right in Hormuz and, of course, we will collect fees for these services," he added.
According to the text of the agreement, the Islamic Republic will take steps to guarantee the safe passage of merchant ships free of charge for 60 days, to give both sides time to negotiate the definitive agreement.
What the Agreement provides for
The memorandum of understanding includes 14 points and provides, among other things, that Iran will never acquire a nuclear weapon.
At the same time, a $300 billion fund is planned for Iran's "reconstitution and economic development", but there is no obligation to finance it directly from the United States.
The agreement also provides for a 60-day period of negotiations to finalise the final terms, lift naval blockade, restore navigation in the Straits of Hormuz, gradually address sanctions and technical talks on the Tehran nuclear programme.
According to the US government, the agreement is based on the principle of 'conformity for reward', with Tehran enjoying economic and political benefits only if it complies with the commitments it has made.
Open issues
Despite the positive climate in the markets, critical issues remain open. The technical negotiations on Iran's nuclear programme, the practical application of lifting restrictions on oil exports and the management of the Straits of Hormuz after the initial 60-day period will determine whether the agreement will lead to permanent de-escalation.
For the time being, however, markets face signing as an important sign of stabilisation, with oil prices falling and investors discounting the risk of a new energy crisis.