Iranian officials declared "major progress" following all-night technical negotiations with the United States in Switzerland, signaling a potential de-escalation in regional tensions.
The development marks a constructive shift from recent heightened hostilities, with both sides reporting encouraging momentum toward a broader agreement.
Iranian Foreign Minister Seyed Abbas Araghchi highlighted the breakthrough, noting that the talks have advanced discussions aimed at resolving the conflict in Lebanon and stabilizing the wider region.
Markets responded to the diplomatic thaw with a noticeable reduction in risk aversion.
Energy prices, which had been buoyed by fears of supply disruption in the Strait of Hormuz, faced selling pressure as traders began to price in a lower probability of immediate conflict.
The repricing reflects a cautious optimism among investors, who are weighing the potential for sustained diplomatic engagement against the historical volatility of Iran-US relations.