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Notes -
Deal reached to end Iran war
Details of the deal are not publicly available right now. However, Trump has authorised an end to the US naval blockade, and Iran has agreed to reopen the Strait.
Not surprisingly though, Israel continues to bomb Lebanon and refuses to cede lands seized in southern Lebanon.
But MORE surprisingly, Trump actually reprimanded Bibi.
So it seems we were lucky to return to the pre-war status quo, even Trump had to tepidly admit that he bit off more than he can chew and Iran's regional dominance is not going anywhere.
Polymarket gives a 28% chance that the strait will be open by June 30. If the peace deal is signed on Friday and implemented on Saturday, then that market would resolve to yes after a few days, so it seems fair to say that the market is skeptical that the deal will hold.
I mean, the US, Iran and Pakistan agreeing that an agreement was reached is certainly a new stage, but it seems likely that the deal will still fall through. In particular, Israel can just veto the deal by continuing to bomb Lebanon at the cost of some MAGA goodwill towards Israel which may not be that valuable after the mid-terms.
Eh, oil futures are down to 80-85, which seems consistent with the deal to reopen Strait holding. This is still 25-30% above pre-war, so we still have a substantial lingering impact as shipping and inventories slowly normalize.
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