Global markets staged a sharp reversal on Tuesday, driven by emerging optimism that a diplomatic breakthrough could restore shipping flows through the Strait of Hormuz.

Qatar confirmed the existence of a draft agreement aimed at reopening the critical waterway, a development that immediately alleviated fears of prolonged supply chain disruptions.

The news coincided with strong corporate earnings reports from the United States, further bolstering investor confidence and triggering a broad rotation back into risk assets.

The shift in sentiment was most pronounced in commodities and currencies.

Copper prices surged to a new all-time high, reflecting renewed demand expectations and easing supply concerns.

Meanwhile, the US dollar weakened significantly, falling 14 units against the Chilean peso as investors unwound safe-haven positions.