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Singapore Shares Open Higher on Steady US Fed Rate, US-Iran Deal Sign

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Singapore shares opened higher on Thursday after the U.S. Federal Reserve kept its benchmark rate steady in the range of 3.50%-3.75% at its latest policy meeting on Wednesday, under newly minted chairman Kevin Warsh. Developments on the U.S.-Iran agreement front also boosted investor optimism.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, rose 0.083%, or 4.34 points, to open at 5,180.8.

U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed the Iran document on Wednesday night, the White House told the BBC.

Key aspects of the deal comprise Iran's commitment not to develop a nuclear weapon, the restoration of shipping via the Strait of Hormuz with no transit fees for at least 60 days, the removal of U.S. sanctions, and an end to hostilities, including in Lebanon.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf, however, said in an interview on state TV that the Strait of Hormuz will not return to its pre-war state. The country plans to begin charging fees on ships passing through the key waterway after 60 days, according to the BBC.

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