Hi YXI friends,

The US and Iran have agreed on a temporary peace deal to reopen the Strait of Hormuz and work towards ending a conflict that has caused many deaths in the Middle East.

This deal, which will be signed in Switzerland, includes a 14-point plan. It extends the ceasefire and starts new talks about Iran's nuclear program (with the goal of restricting Tehran’s enrichment of uranium for around 15 years).

Aside from the negotiations, there is still a lot of work to be done in the actual reopening of the Strait. It includes mine-clearing first to ensure the Strait is actually safe for ships. Moreover, Iran plans to levy a tax on future ships after the 60-day grace period, which the Gulf states are not particularly keen on.

Overnight, we are seeing a further slide in oil and an easing in bond yields, but neither is dramatic. Equities, commodities, and crypto are all rallying ahead of the open.

What I am now keenly watching is whether the market can get past the all-time high or sell the news instead. We have Kevin Warsh’s first FOMC meeting on Wednesday, which will be very interesting for the market to get the first proper read on him.

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