Stocks have surged while the US dollar and oil prices slid as the prospect of a deal to end the Iran war buoys risk appetite, although a lack of clarity over when the Strait of Hormuz will open has kept enthusiasm in check.
The nearly three-month-long conflict in the Middle East has driven energy prices sharply higher and reshaped the global rates outlook, as inflation concerns intensify following Tehran's effective shutdown of the key strait through which a significant share of the world's energy flows.
US President Donald Trump said he had told his representatives not to rush into any deal with Iran, as his administration played down hopes of an imminent breakthrough.
Just a day earlier, Trump said Washington and Iran had "largely negotiated" a memorandum of understanding on a deal that would reopen the waterway, which carried one-fifth of global oil and liquefied natural gas shipments before the war.
Chris Weston, head of research at Pepperstone, said markets have become less focused on the timing of a resolution and instead been keeping an eye on the tone of the headlines.
"The tone has been consistently towards some sort of resolution ...
We've become very patient for a resolution deadline." For much of the year, oil prices have steered broader markets as investors sift through often conflicting signals from Washington and Tehran, with both sides locked in negotiations since a fragile ceasefire took hold in April.
On Monday, oil prices hit two-week lows to kickstart the week with Brent crude futures down more than four per cent to $98.83 a barrel, while US West Texas Intermediate was at $92.03 a barrel, also down more than four per cent.
The euro was....
