Diplomatic efforts to revive a ceasefire agreement between the US and Iran spark risk-on sentiment, lowering oil prices and bond yields.
The US and Iran are engaged in renewed negotiations to reestablish a ceasefire agreement, aiming to facilitate nuclear talks. This follows the collapse of a prior deal three weeks after its signing six weeks ago, which had failed to progress as intended.
Earlier attempts mirrored current proposals, including US plans to lift a naval blockade on Iran in exchange for reopening the Strait of Hormuz. Markets have reacted positively to the latest developments, with oil prices and bond yields declining while US equities edge higher.
No formal agreement has been reached, but mediation efforts continue. President Trump stated nuclear talks could begin imminently, though skepticism remains over the durability of any deal.