US VP Vance: We expect Strait of Hormuz to be open toll-free long term

Eren Sengezer FXStreet

In an interview with CNBC on Monday, United States (US) Vice President JD Vance said that they expect the Strait of Hormuz to be "open toll-free in the long term," per Reuters.

Key takeaways

"Will have two-step verification process."

"Lots of details still to sort out."

"We will see where Tehran is willing to make concessions."

"We expect to have a full spectrum of Iranian representatives at Friday signing."

"Think there are elements in Israel that like the deal."

"Hope to release text this week."

"Certainly Israel will have a seat at the table in the new Middle East."

Market reaction

The US Dollar (USD) Index remains within the lower half of its daily range following these comments. At the time of press, the USD Index was down 0.3% on the day at 99.50.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD climbs above 1.1600 as markets cheer US-Iran deal

EUR/USD gathers bullish momentum and trades above 1.1600 on Monday. The US and Iran have reached a deal to reopen the Strait of Hormuz on Sunday, which underpins risk sentiment, supporting the Euro against the US Dollar. Now, the main focus this week remains on the Fed policy decision due on Wednesday.

GBP/USD retreats from 10-day high, holds above 1.3200

GBP/USD pulls away from the 10-day high it touched above 1.3460 but manages to stay in positive territory above 1.3400. The positive shift seen in risk mood following news of the US and Iran reaching a framework agreement to end the conflict and reopen the Strait of Hormuz helps the pair hold its ground.

Gold rallies beyond $4,300 as geopolitical tensions ease

Gold rises sharply on Monday and trades well above $4,300, gaining nearly 3% on the day. The precious metal gathers bullish momentum after the United States and Iran had reached a deal to end their conflict, easing concerns about inflation and higher interest rates.

Bitcoin consolidates gains, Ethereum defends support, XRP nears breakout trigger

Bitcoin, Ethereum and Ripple begin the week on a constructive note as the top three cryptocurrencies attempt to extend rebounds after recovering nearly 4%, 2% and 2.6%, respectively. BTC steadies around $65,600, ETH continues to hold firmly above the key $1,700 support, while XRP nears the upper boundary of the falling channel pattern.

President Trump announced that the deal with Iran is complete

President Trump announced that the deal with Iran is complete and he authorises the toll-free opening of the Strait of Hormuz and removal of the US Naval blockade. While the agreement is made, it is expected to be signed on Friday to take effect. The Forex market looks stable and could react slowly to the positivity around the news as Iran still expresses its mistrust on the US.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.