US and Iran Reportedly Agree on Peace Deal, Oil Prices Drop

Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.

The deal announced over the weekend is the furthest Washington and Tehran have gotten in the peace process.

However, the lack of specifics, along with some differences in what the two sides are saying, leaves significant room for doubt about whether the deal can stick.

The U.S. and Iran have gotten the furthest yet in their efforts to end their war, with U.S. President Donald Trump and mediator Pakistan saying that Washington and Tehran have agreed on a peace deal that will be signed on June 19 in Switzerland.

The deal will see the Strait of Hormuz opened and the U.S. naval blockade lifted, in effect ending the conflict.

Other points reportedly include that the U.S. agrees not to impose any new sanctions on Iran until a final deal is reached, and sanctions on the Islamic Republic will be lifted and frozen Iranian assets will be released.

Iran would maintain ​the current status of its nuclear program, while further negotiations will be held within 60 days from the deal and addressed in a final agreement.

Some might say that simply brings things back to the state of affairs before the war began.

Iran already threatened to scupper the agreement on Sunday, when Israel struck targets in Lebanon.

Former U.S. President Barack Obama said that any agreement reached is unlikely to be fundamentally different from the 2015 nuclear deal negotiated during his administration, referring to the Joint Comprehensive Plan of Action (JCPOA), which Trump tore up in his first term.

Nonetheless, investors, especially oil traders, are optimistic, with international benchmark Brent falling over 4% to trade at $83.78 per barrel, and U.S. West Texas Intermediate down 4.69% at $80.9.

U.S. stock futures were also in positive territory, and Asian markets rallied strongly in early trading, with South Korea's Kospi up over 4%.

"The best-laid schemes of mice and men go oft awry," poet Robert Burns said in 1785. For now, though, investors are betting this one won't — at least until the next twist in the tale.