The White House confirmed on Tuesday that the United States and Iran have signed a framework for a peace agreement, an announcement that came as President Donald Trump prepared to meet with G7 leaders in France. A formal signing ceremony for the deal is scheduled for Friday, according to administration officials.
The confirmation followed reports of the agreement and denials from the president regarding specific terms. On the social media platform Truth Social, President Trump addressed claims that the U.S. would pay Iran $300 million as part of the deal. He stated the reports were “Fake News, put out by the Dumocrats!!!”
International reaction to the framework included statements welcoming the potential for de-escalation while also raising questions about the agreement’s specific conditions. According to an analysis by the data firm Kpler, traffic through the Strait of Hormuz is projected to increase to nearly 50% of pre-conflict levels within a month under the terms of the framework.
Global financial markets responded to the news with shifts from previous gains. Following record highs on Monday, U.S. and European stock futures were down in early trading. Markets in the Asia-Pacific region showed mixed results.
In other global economic news, the Bank of Japan announced it was raising its key interest rate to 1%, its highest level since 1995. The central bank cited a weak yen and rising inflation as factors in its decision. In a separate announcement, the Reserve Bank of Australia stated it would keep its interest rates unchanged at 4.35% but noted that future hikes have not been ruled out.
Economic data from China released Tuesday showed a drop in retail sales for the first time in over three years, with other economic indicators also contracting in May.
Several major corporations were also subjects of financial news.
Shares for the aerospace company SpaceX increased during the first full day of trading after its initial public offering on Friday.
Technology company Nvidia is planning a debt sale, according to a source with knowledge of the matter. The source indicated the company could seek to raise at least $20 billion.
Artificial intelligence firm Anthropic is scheduled to meet with Trump administration officials to discuss an export control directive that has suspended access to its AI models, Fable 5 and Mythos 5, for foreign nationals.
