United States and Iranian negotiators have concluded a preliminary agreement to end hostilities, marking a significant diplomatic shift after a first round of talks in Switzerland.
The development comes despite earlier threats from US President Donald Trump, signaling a rapid change in the geopolitical posture between the two nations.
The agreement is expected to ease critical shipping bottlenecks in the Strait of Hormuz, a key chokepoint for global energy supplies.
Markets have reacted to the news with reduced risk premiums, as traders price in a lower probability of supply disruptions in the region.
The de-escalation offers immediate relief to energy markets, which have been volatile amid fears of prolonged conflict.
This breakthrough follows reports of a broader nuclear deal framework, suggesting a comprehensive approach to resolving longstanding tensions.