The United States and Iran have reached a mutual understanding agreement that effectively brings hostilities in the region to a close, marking a significant diplomatic breakthrough mediated by Pakistan.
The framework deal, confirmed by Islamabad, represents a decisive shift from the recent escalation that had kept tanker routes exposed and energy markets on edge.
3% to 24,956 points as investors trimmed the geopolitical risk premium that had weighed on sentiment.
The de-escalation has triggered immediate repricing across risk assets.
European equities responded with relief, with the DAX rising 1.3% to 24,956 points as investors trimmed the geopolitical risk premium that had weighed on sentiment.
Energy and shipping sectors, previously vulnerable to Strait of Hormuz disruption fears, are now recalibrating their exposure models as the immediate threat of conflict subsides.
While the cessation of hostilities is a positive development for global stability, the durability of the arrangement remains uncertain.