Global markets have shown signs of relief following reports that U.S. and Iranian officials are close to finalizing a one-page agreement to end the two-month-old conflict involving the United States and Israel.
The development has triggered a rally across multiple asset classes, with equity indices and energy prices showing notable gains.
The potential ceasefire marks a significant shift in the geopolitical landscape, which has been a key source of volatility in recent weeks.
Energy markets, in particular, have seen a sharp decline in risk premiums as the prospect of reduced tensions in the region gains traction.
Brent crude futures have retreated from recent highs, while equities in the energy sector have also seen a pullback in speculative positioning.
The broader market reaction reflects a recalibration of risk appetite, with investors shifting capital into cyclical sectors and away from defensive plays.