Markets Revel in the Perfect Trifecta as Oil Sinks and Stocks and Bonds Rally

Investors greeted a potential peace framework between the United States and Iran with relief-driven trading as oil prices fell and risk appetite improved. The market is weighing whether Hormuz could reopen on schedule and whether a 60-day negotiation window can turn a Memorandum of Understanding into a durable peace framework. Oil’s decline boosted equities and pushed bonds higher in some regions, signaling a relief rally rather than a full resolution of supply risk. As the narrative unfolds, traders will watch whether the paper has teeth and how lower oil, inflation expectations and policy yields interact to sustain the up move.