The United States and Iran have reached a preliminary agreement on a mechanism to keep the Strait of Hormuz open and maintain the ceasefire in Lebanon, following 18 hours of negotiations in Switzerland.
Mediators described the outcome as "significant progress," with US Vice President JD Vance stating that the talks had "laid a very good foundation" for further diplomacy.
The development marks a tangible step forward in de-escalating tensions, even as President Donald Trump continued to issue explosive threats against Tehran during the session.
Markets responded to the news with a reduction in geopolitical risk premiums.
Brent crude prices softened as the immediate threat of shipping disruption in the critical chokepoint receded.
The agreement on a monitoring mechanism for the Strait addresses a key concern for energy traders and shipping insurers, who have been pricing in elevated volatility due to the risk of Iranian retaliation or blockade.