Risk assets advanced as optimism over a possible US-Iran agreement to reopen Hormuz Strait shipping lanes pressured oil prices and improved broader market sentiment, though key terms remain under negotiation.
Markets moved into a risk-on posture as optimism grew over a possible US-Iran agreement that could reopen shipping lanes through the Hormuz Strait. WTI crude fell more than 5%, while US stock futures rose and the US dollar weakened after officials said a deal could be only days away. The development adds more concrete market impact to the earlier discussion of Iran-related negotiations, although key terms of any agreement are still being negotiated.