Global equity markets rallied and crude oil prices retreated sharply on Monday, driven by reports that the United States and Iran have reached a peace agreement.
The deal aims to end nearly four months of conflict, immediately alleviating fears of prolonged supply disruptions in the Middle East.
Investors quickly repriced the geopolitical risk premium that had weighed on energy assets and supported safe-haven flows.
The market reaction was broad-based, with major stock indexes posting gains as risk sentiment improved.
Conversely, oil prices fell as traders unwound positions built on the expectation of continued shipping disruptions or production outages.
The shift in sentiment also impacted currency markets, where the Japanese yen strengthened against both the euro and the dollar.