Global markets are showing signs of relief following reports that U.S. and Iranian officials are nearing a one-page agreement to resolve the two-month-old conflict involving the United States and Israel.
The development, first highlighted by Axios and corroborated by Bloomberg, has led to a shift in risk appetite among investors.
Equity indices in Europe and Asia have seen modest gains, with energy and commodity markets particularly responsive.
Brent crude futures have retreated from recent highs, reflecting eased concerns over potential disruptions in the Strait of Hormuz.
The U.S. dollar has also softened against major currencies, as traders reassess the likelihood of renewed hostilities in the region.
The potential deal follows earlier diplomatic overtures, including Iran's submission of a revised proposal to the U.S. aimed at addressing key demands.