Wall Street had one of its best days in weeks after the US and Iran reached a preliminary ceasefire agreement, sending the Nasdaq up roughly 2.3% and the S&P 500 higher by about 1.3%. The Dow joined the party with a gain of approximately 1.2%.

What the deal actually includes

The preliminary agreement establishes a 60-day ceasefire during which hostilities, including those in Lebanon, are set to pause. Deeper discussions about Iran’s nuclear program have been deferred to a later phase.

A 14-point framework for the ceasefire was leaked to the public before the formal signing, which is scheduled for June 19 in Switzerland. President Trump and Iranian President Masoud Pezeshkian are both expected to be involved in the ceremony.

The mediation effort drew in multiple countries, with Pakistan and Qatar playing notable roles in brokering the talks. Perhaps the most market-relevant provision: the reopening of the Strait of Hormuz with no tolls.

Oil prices dropped by approximately 5% on the news.

What this means for investors

A 60-day ceasefire is not a permanent peace agreement. Nuclear discussions have been explicitly deferred. The formal signing hasn’t even happened yet.

Traders should also keep an eye on oil. A 5% drop is significant, but if the ceasefire holds and the Strait reopens without incident, crude could have further to fall.

The risk investors should watch most closely is the June 19 signing ceremony. If it goes smoothly, expect another leg higher across both traditional and digital asset markets. If it doesn’t, the reversal could be swift.