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Update: US Equity Indexes March Higher Ahead of Iran Reopening Hormuz Chokepoint

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(Updates with index/price moves and political news from the first paragraph.)

US equity indexes rose as crude oil headed for pre-Iran war levels after a peace deal signed by President Donald Trump and his Iranian counterpart, Masoud Pezeshkian, set the stage for an immediate reopening of the Strait of Hormuz.

The Nasdaq Composite advanced 1.5% to 26,406.3, with the S&P 500 up 1.1% to 7,499.9 and the Dow Jones Industrial Average higher by 0.4% to 51,673.7 ahead of Thursday's close.

Trump and Pezeshkian digitally signed a memorandum of understanding targeting a permanent peace deal to end the war between the US and Iran.

"Upon the signing of this MOU, the Islamic Republic of Iran will make arrangements using its best efforts for the safe passage of commercial vessels with no charge for 60 days only from the Persian Gulf to the Sea of Oman and vice versa," Reuters cited one of the clauses in the framework agreement. "The traffic of commercial vessels will immediately start and, considering the need for removing the technical and military obstacles and de-mining by the Islamic Republic of Iran, will be instated within 30 days."

Israel published a map on Thursday showing an expanded military control zone in southern Lebanon and said it would not rule out carrying out attacks beyond it, challenging the terms of the US-Iran pact that calls for Lebanon's sovereignty to be respected, Reuters reported.

US Vice President JD Vance on Thursday rebuked Israeli officials criticizing the agreement with Iran, saying at a White House press briefing that Trump "is the only head of state in the entire world who is sympathetic to the nation of Israel at this moment in time," according to the Associated Press.

Front-month global benchmark North Sea Brent slumped 0.7% to $79.03 per barrel, and the US West Texas Intermediate sank 1% to $76.06 per barrel.

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