Big Update in Middle East War: Trump claims US-Iran peace deal, Tehran confirms; GIFT Nifty zooms

US President Donald Trump on Monday claimed that the United States and Iran have reached a final peace agreement, effectively bringing an end to a nearly four-month-long conflict that had kept global energy markets and geopolitical observers on edge. The announcement came through a series of posts on Truth Social -- the social media platform owned by Trump Media & Technology Group -- where the American president wrote he had authorised the immediate reopening of the Strait of Hormuz and ordered the removal of the US naval blockade in the region.

The development was separately confirmed by Iran, with the country's deputy foreign minister writing on microblogging site X (formerly Twitter) that Tehran had agreed to the deal. Pakistan Prime Minister Shehbaz Sharif said that Washington and Tehran had reached an understanding to end the conflict and that an official signing ceremony would take place in Switzerland on June 19, according to foreign media reports.

The news appeared to offer major relief across markets, also adding credibility to claims from both sides following months of military escalation, diplomatic setbacks and contradictory statements. Asian markets soared in early trade on Monday, with GIFT Nifty futures indicating a gap-up start on Dalal Street. GIFT Nifty futures serve as an early indicator of the 50-scrip headline index, Nifty50, in India.

US-Iran Deal: What Donald Trump said

Declaring that the agreement was complete, Trump announced that the Strait of Hormuz would be reopened for global shipping without restrictions. The Strait of Hormuz -- which connects the Gulf of Oman with the Persian Gulf and the Arabian Sea -- remains one of the most strategically important maritime passages in the world. Before the onset of the war, with the killing of Iran's Supreme Leader Ali Khamenei by joint American-Israeli strikes on February 28, the strait enabled the supply of about one-fifth of the world's oil and gas. Any disruption to traffic in the region has historically triggered volatility across energy markets as well as shipping rates.

"The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," Trump wrote on Truth Social.

"Ships of the World, start your engines. Let the oil flow!" he added.

In another post, describing the deal as a historic breakthrough for the Middle East and claiming that previous US administrations had failed to secure a similar outcome, Trump wrote: "This Great Deal will bring Peace and Security to the whole Region. Many presidents have tried to make Peace with Iran, and all have failed before me."

The reopening of the strait and removal of naval restrictions could ease concerns around global oil supplies and maritime trade flows, say analysts.

He also said the reopening of the strait following the formal signing ceremony would facilitate mine-clearing operations and restore two-way oil flows through one of the world's most important energy chokepoints.

Iran confirms agreement

Iran appeared to publicly acknowledge the breakthrough, with the country's deputy foreign minister writing on social media that an agreement had been reached with the United States. The confirmation came shortly after Trump's announcement.

"We inform the noble nation of Iran (that) the Islamic Republic of Iran, under the guidance of its martyred leader, relying on its superiority over the American-Zionist enemy, the wise measures of the Supreme Leader, the support of the Iranian people, and the efforts of the courageous fighters of Islam, has, following a difficult and intensive period of negotiations, finalized a memorandum of understanding regarding the end of the war between Iran and the United States (translated from Persian)," wrote Secretariat of the Supreme National Security Council (SNSC).

"In accordance with the agreements reached, and based on a resolution of the Supreme National Security Council, the war and military operations on all fronts -- including Lebanon -- will come to an immediate and permanent end. Also, the naval blockade imposed against Iran will be lifted immediately and completely," the post added.

Asian markets rally on peace hopes; GIFT Nifty signals strong Dalal Street start

Asian equities also traded sharply higher on Monday as investors welcomed signs of de-escalation in the Middle East and the prospect of uninterrupted oil flows through the Strait of Hormuz. GIFT Nifty futures were up 347 points, or 1.5 per cent, indicating a strong opening for Indian equities.

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 2.4 per cent. Japan's Nikkei 225 surged 5.6 per cent, while South Korea's KOSPI jumped 4.8 per cent. Singapore's Straits Times index gained 1.4 per cent, Hong Kong's Hang Seng rose 0.7 per cent and China's Shanghai Composite added 1.2 per cent.

Wall Street futures spike

Dow Jones Industrial Average (DJIA) futures were last seen trading up 0.9 per cent in early Asian trade. On Friday, the main US stock indices finished the last session of the week in positive territory as investors assessed the possibility of easing tensions in the Middle East. The Dow Jones Industrial Average rose 0.7 per cent that day, while the broader S&P 500 closed 0.50 per cent higher and the technology stocks-heavy Nasdaq Composite climbed up 0.3 per cent.