S&P 500 rebounds on reports of US-Iran 60-day ceasefire MoU

Wall Street reversed a weak start and turned positive on Thursday after reports emerged that the United States and Iran had reached a preliminary agreement aimed at extending the current ceasefire and launching negotiations over Iran’s nuclear program.

The S&P 500 and Nasdaq Composite both climbed to fresh record highs during the session following the news, while the Dow Jones Industrial Average traded little changed.

According to Axios journalist Barak Ravid, US and Iranian negotiators reached an agreement on a 60-day memorandum of understanding designed to extend the ceasefire and begin talks surrounding Iran’s nuclear program.

However, President Donald Trump had not yet granted final approval for the agreement, according to two US officials and a regional source involved in the mediation efforts.

The report helped improve market sentiment after investors had earlier remained cautious amid ongoing geopolitical uncertainty in the Middle East.

The US dollar also extended losses following the headline.

Proposed agreement focuses on ceasefire and nuclear talks

According to Axios, the proposed memorandum of understanding would represent the most significant diplomatic development since the conflict began.

US officials reportedly said the broad terms of the agreement had largely been finalized by Tuesday, though approval from senior leadership on both sides was still required.

“The president relayed to the mediators that he wants a couple of days to think about it,” a US official said.

US officials also claimed Iranian negotiators later informed mediators that they had received the necessary approvals and were prepared to sign the agreement, though Iran has not publicly confirmed that position.

The proposed 60-day agreement would reportedly state that shipping through the Strait of Hormuz would remain “unrestricted.”

A US official cited in the report said the arrangement would involve “no tolls and no harassment,” while Iran would be required to remove all mines from the strait within 30 days.

The report also said the US naval blockade would be lifted gradually alongside the restoration of commercial shipping activity.

Nuclear commitments and sanctions discussions included

According to the report, the memorandum would also include an Iranian commitment not to pursue a nuclear weapon.

The first stage of negotiations during the 60-day period would reportedly focus on the handling of Iran’s highly enriched uranium and discussions surrounding uranium enrichment activity.

The US would also agree to discuss sanctions relief and the release of frozen Iranian funds during negotiations.

Additionally, the memorandum would include discussions surrounding mechanisms to help Iran begin receiving goods and humanitarian aid.

US officials noted that while the agreement could represent a major diplomatic breakthrough, a final long-term deal addressing President Trump’s nuclear demands would still require extensive additional negotiations.

Trump and his advisers had previously believed they were nearing an agreement at several earlier stages of the conflict, though those efforts ultimately failed to produce a final deal.

Markets respond positively to easing geopolitical tensions

Financial markets reacted positively to the latest developments as investors viewed the proposed agreement as potentially reducing the risk of broader regional disruption.

The S&P 500 rose 0.3% during the session, while the Nasdaq Composite also gained 0.3%, with both indexes reaching fresh all-time highs.

The Dow Jones Industrial Average was down 79 points.

Currency markets also reflected improving risk appetite, with the US dollar weakening after the report.

The proposed ceasefire extension and negotiations around the Strait of Hormuz are being closely monitored by investors, given the region’s importance to global oil shipments and broader energy markets.