Analysts welcome US-Iran deal as positive for markets
The US-Iran deal is expected to have a positive impact on risk assets, with emerging market equities and local currencies being the preferred expression of the trade.
Oil prices are likely to face further downside pressure due to oversupply dynamics, with a 12-month price target of $78 per barrel and a six-month conflict-period average forecast of $90.
The deal may also lead to a rotation out of oil majors, including BP and Shell, which have already underperformed since late March.
The FOMC meeting this week is expected to carry more near-term market weight than the geopolitical headline itself, with precious metals potentially catching up as the focus shifts from war risk to rate and dollar dynamics.