US-Iran Deal Hopes Lift Risk Appetite, Oil Near Lows

Markets are rallying on expectations of a US-Iran deal, even as the two sides appear to interpret the tentative agreement differently. No formal terms have been released, but the mere prospect of reduced tensions is lifting risk assets across the board.

Crude oil, however, remains under pressure – trading near two-month lows – as a potential deal could lead to increased Iranian oil exports. Brent and WTI are both subdued as traders weigh the supply implications of a diplomatic breakthrough.