US-Iran Peace Agreement Boosts Oil, Markets Overlook Hawkish Fed

An interim peace agreement between the United States and Iran has unlocked oil flows, sending crude prices lower initially but boosting risk appetite across global markets. The positive sentiment helped investors shrug off the previous day's unexpectedly hawkish tone from the Federal Reserve.

The deal, though provisional, marks a significant de-escalation in tensions between the two nations. Markets reacted broadly higher, with equities and currencies of oil-importing countries gaining. The move also tempered expectations of further Fed tightening, as the market priced in lower geopolitical risk.

Oil supply concerns eased on the news, leading to a modest decline in crude benchmarks. However, the broader market rally underscored a shift toward risk-on positioning, with the dollar weakening slightly against major peers.