Lizzie Burden

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I'm Lizzie Burden.

And I'm Caroline Hepker.

President Trump has signed an interim deal to end the war with Iran and reopen the Strait of Hormuz.

According to a US official, the so-called Memorandum of Understanding is now in effect.

However, it's unclear whether Iran has begun taking steps to fully reopen the waterway.

Explaining his decision to agree to an interim peace deal, Trump repeated his insistence that the country would never obtain a nuclear weapon.

Yet he went on to suggest that Iran should have the right to enrich uranium for electricity and be allowed to develop ballistic missiles.

Trump also defended the $300 billion development programme for Iran in the deal, while saying he's ready to release billions of dollars in frozen Iranian assets.

Details of Trump's deal have prompted unusually strident criticism from Iran hawks, who say it amounts to a victory for Tehran.

Speaking to Bloomberg government, Trump's first-term vice president, Mike Pence, argued that the agreement makes no mention of verifiably dismantling the country's nuclear weapons programme.

Meanwhile, traders have piled into bets on rate hikes.

After Fed Chair Kevin Walsh used his first rate decision press conference to emphasise that the central bank will not tolerate higher inflation.

As expected, policymakers voted unanimously to hold rates steady in a range of 3.5% to 3.75%.

However, it was Kevin Walsh's comments to reporters after the decision that really caught the attention of markets.

Walsh largely sidestepped a question on why the Fed didn't go ahead and raise rates now, given that inflation is running at more than double the central bank's 2% target.

Well, that rate hold is expected after UK inflation came in steadier than expected yesterday.

Now, both traders and economists believe rates will be held at 3.75%, even with the recent energy shock.

Hugh Gimber is global market strategist at JPMorgan Asset Management.

JP Morgan's Hugh Gimber there.