U.S. and Iranian officials are reportedly close to finalizing a 60-day extension of their current ceasefire, according to reports from Bloomberg and Axios.
The proposed deal also includes a framework for future nuclear negotiations, marking a significant step in de-escalating the ongoing conflict in the region.
Markets have responded cautiously to the news, with energy prices showing mixed movements as traders assess the implications of a potential reduction in geopolitical risk.
The outcome of these talks could have a material impact on global oil flows and regional stability, particularly in the Gulf.
The ceasefire, which has been in place for several months, has helped to reduce the risk of direct military confrontation between the two nations.
However, the broader geopolitical tensions remain, with the situation in the Middle East continuing to be a key factor for global markets.