investingLive Asia-Pacific FX news wrap: US, Iran agree an MOU, signing scheduled Friday

• Iran peace deal won't derail BOJ rate hike to 31-year high on Tuesday, ex-BOJ economist
• Chinese municipalities ramp housing subsidies, provident fund rules to stabilise property
• ICYMI: From Hormuz to highly enriched uranium: the key terms of the U.S.-Iran agreement
• Singapore to remove fund 5% cap on gold physical investment
• PBOC sets USD/ CNY reference rate for today at 6.8088 (vs. estimate at 6.7544)
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• Reports that South Korea have liaised with US to agree to support the won
• Another day, another South Korea trading halt. Kospi futures +5%
• RBNZ hike path collides with weakest labour market in ten years, Silk speaks today
• Trump is already threatening to resume strikes on Iran
• UK, France, Germany and Italy welcome deal but demand unconditional Hormuz access
• Fourteen-article MOU sets 30-day Hormuz deadline and excludes Iran missile program
• Trump says Hormuz will not be open until Friday, upon signing of ceasefire deal
• Iran confirms ceasefire MOU with U.S. but warns finger stays on the trigger
• Globex is open. Oil down 3%, ES and NQ up 0.7% and 1% respecitvely
• Trump posts on the deal with Iran
• The USD has been marked lower in thin early Asia trade on the back of the peace news
• Pakistani PM: Announce the reaching of a peace agreement between America and Iran
• Trump says plans to issue a statement confirming deal that Iran hasn't agreed to yet. LOL.
• Trump tweets that "The Strait of Hormuz will be opening up for business very shortly". LOL
• Iranian state TV says Israel "will be heavily bombed tonight."
• Monday open indicative forex prices 15 June 2026. No deal signed yet.
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• Newsquawk Week in Focus: Fed, BoJ, RBA, BoE, SNB, US Retail Sales, and Japan CPI

Summary:

• U.S. and Iran agreed an MOU; Pakistan's PM announced the deal, with formal signing set for Switzerland on June 19
• Immediate and permanent cessation of military operations declared on all fronts, including Lebanon
• Strait of Hormuz to reopen; Trump authorised immediate lifting of the U.S. naval blockade
• Iran's 14-point MOU terms published by Mehr News Agency; neither side released an official text
• Deal terms seen as heavily favourable to Tehran: oil sanctions suspended, $12bn unfrozen before talks, missiles and proxies excluded from negotiations, $300bn reconstruction fund demanded of Western allies
• Netanyahu told Trump Israel does not consider itself bound by the Lebanon provisions and plans to maintain troops and operations against Hezbollah
• Singapore removed its 5% cap on physical precious metals investment for funds and family offices; SGX to launch OTC Loco Singapore gold clearing, central bank vaulting by October
• Oil fell around 4% on Hormuz reopening; gold cleared USD 4,300; USD weakened; Nikkei hit a record high; Japan and South Korea equities rallied

The dominant story of the session was the U.S.-Iran memorandum of understanding, announced by Pakistan's Prime Minister Shehbaz Sharif and subsequently confirmed by both Washington and Tehran, with the formal signing scheduled for Friday June 19.

Trump declared the Strait of Hormuz open and authorised the immediate removal of the U.S. naval blockade, telling vessels from all nations to sail and stating that oil would flow. Iran's deputy foreign minister confirmed the MOU text had been finalised, crediting the Islamabad-drafted framework and Iran's military posture with securing Tehran's core demands.

Neither government released the official text, but Iran's Mehr News Agency published what it described as the 14-clause MOU. The terms, if accurate, represent a striking set of concessions: oil and petrochemical sanctions suspended, half of $24 billion in frozen assets released before formal negotiations begin, Iran's missile programme and proxy relationships carved out of the agenda entirely, and a $300 billion-plus reconstruction commitment demanded of the U.S. and its allies. Critics characterised the arrangement as worse than the original JCPOA, with none of the war's stated objectives achieved.

The deal's durability faces an early test. Israeli Prime Minister Netanyahu informed Trump that Israel does not regard itself bound by the Lebanon provisions, intends to keep troops in place and will continue operations against Hezbollah. That position sits in direct conflict with the MOU's declared permanent ceasefire on all fronts and with Trump's own public demand for no further Israeli strikes in Lebanon.

Markets moved sharply on the announcements. Oil fell around 4% on the Hormuz reopening signal, the Nikkei moved to a record high, broader Asian equities gained and the dollar weakened. Gold pushed above USD 4,300, aided in part by Singapore's removal of a 5% cap on physical precious metals investment for eligible funds and family offices, a structural demand unlock accompanied by the launch of OTC Loco Singapore gold clearing infrastructure and a central bank vaulting facility due by October.

The week to come carries the BOJ rate decision on Tuesday, Uchida's press briefing with Ueda hospitalised, and the Swiss signing ceremony on Friday, assuming the Lebanon thread does not unravel before then. As an aside it's a Chinese and US holiday on Friday.

This article was written by Eamonn Sheridan at investinglive.com.