Oil prices retreated and global stock markets showed mixed performance as investors reacted to initial progress in diplomatic talks between the US and Iran. Brent crude dropped 1.9% to $79 a barrel after the two sides agreed to a 60-day roadmap toward a final peace deal. In contrast, technology shares boosted Asia's equity benchmark by 0.6%, although futures for the S&P 500 and European stocks both fell by approximately 0.5%.
Mediators Qatar and Pakistan confirmed "encouraging progress," including the establishment of a mechanism for further technical discussions and a communication line to prevent incidents in the Strait of Hormuz. The talks faced an initial setback when Iranian media reported a halt after US President Donald Trump reiterated threats if Hezbollah continued attacks on Israel. However, discussions continued, leading to the creation of a "de-confliction cell" involving the parties and Lebanon to ensure adherence to a cessation of military operations in the region.
US equities are scheduled to resume trading, with the S&P 500 having gained for 11 out of the past 12 weeks. Nasdaq 100 futures were down 0.5% after an earlier decline of over 1%. The dollar appreciated by 0.2%, building on previous week's gains, while the British pound traded near its yearly low amid expectations of Keir Starmer's impending departure as UK prime minister.
Key market movements included S&P 500 futures falling 0.4%, Japan's Topix rising 1.4%, Australia's S&P/ASX 200 remaining largely unchanged, Hong Kong's Hang Seng dropping 1.2%, and the Shanghai Composite rising 0.4%. Euro Stoxx 50 futures also decreased by 0.4%. In currencies, the euro fell 0.1% to $1.1456, and the Japanese yen declined 0.2% to 161.66 per dollar. Bond yields saw increases, with 10-year US Treasuries advancing three basis points to 4.48%. West Texas Intermediate crude fell 0.6% to $75.36 a barrel, and spot gold rose 0.6% to $4,182.38 an ounce.
