U.S. and Iranian negotiators are close to finalizing a 60-day extension of their current ceasefire, with the agreement contingent on approval from U.S. President Donald Trump.
The deal also includes a framework for future nuclear negotiations, according to reports from Bloomberg and Axios.
This development marks a potential shift in the geopolitical landscape, which has been a key driver of market uncertainty in recent months.
Markets have shown sensitivity to U.S.-Iran relations, particularly in energy and shipping sectors.
A prolonged ceasefire could reduce the risk of renewed hostilities in the Strait of Hormuz, a critical global oil transit route.
Energy prices and shipping freight costs have historically fluctuated in response to tensions in the region.