Global markets reacted sharply on June 14 and into June 15 after news emerged of a peace agreement between the US and Iran, a breakthrough reportedly brokered by Pakistan that could ease geopolitical tensions across the Middle East.

Gold prices rallied as investors sought safe-haven assets, with spot gold rising 1.8% to $4,297.42 per ounce. US gold futures for August delivery climbed 1.9% to $4,318.10 per ounce, reaching their highest level since June 9, The Caspian Post reports via Anadolu Agency.

Meanwhile, oil prices moved in the opposite direction. Brent crude fell nearly 4%, slipping below $84 per barrel after trading above $87 earlier in the session. The decline reflected expectations that energy supplies could stabilize following the agreement and the potential reopening of key shipping routes.

Lower oil prices also helped ease concerns about inflation and future interest rate pressures, boosting optimism among investors.

Pakistan’s Prime Minister Shehbaz Sharif hailed the breakthrough, writing on X: "Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED."

According to officials, both sides agreed to a permanent end to military operations, including in Lebanon. A formal signing ceremony is scheduled for June 19 in Switzerland, Sharif confirmed.

The agreement is expected to pave the way for the reopening of the Strait of Hormuz, one of the world’s most critical energy chokepoints through which a significant share of global oil exports passes.

The market reaction followed US President Donald Trump’s announcement on Truth Social that the peace agreement with Iran “is complete,” authorizing the full reopening of the Strait of Hormuz and the lifting of the US naval blockade on Iranian ports.