Global equity markets rose on Monday as investors monitored the implementation of an interim peace deal between Iran and the United States.
The diplomatic progress, which aims to resolve a two-month-old conflict involving the U.S. and Israel, provided a backdrop of reduced risk aversion for equities.
Asian markets opened higher, reflecting tangible progress in negotiations that had previously weighed on regional sentiment.
Despite the easing political tensions, oil prices moved higher following reports of tit-for-tat attacks.
The divergence between equity relief and energy strength suggests that supply-side risks remain a primary driver for commodity traders.
Investors appear to be pricing in continued volatility in the Strait of Hormuz region, even as diplomatic channels show signs of de-escalation.