Global Markets Rally as US-Iran Diplomatic Hopes Emerge

European shares are poised for a positive open on Tuesday following signals that the United States and Iran are exploring a diplomatic resolution to their ongoing conflict. President Donald Trump indicated that Tehran has reached out to Washington to negotiate an agreement, potentially paving the way for a second round of face-to-face talks to secure a lasting ceasefire. Turkey is reportedly acting as a mediator to bridge the gap between the two nations. While the U.S. administration remains cautiously optimistic, a primary point of contention remains the duration of a uranium enrichment freeze; Tehran has proposed a five-year suspension, while the U.S. is demanding a 20-year commitment. Both sides may consider extending the current ceasefire deadline to allow for further negotiations. The geopolitical thaw triggered an immediate reaction in commodities. Brent crude dropped nearly 2% to fall below $98 per barrel as concerns over energy supply disruptions eased. Meanwhile, gold climbed toward $4,800 an ounce, and the U.S. dollar retreated to a one-and-a-half-month low against a basket of currencies. Equity markets responded positively, with U.S. indices closing sharply higher. The Nasdaq Composite gained 1.2% and the S&P 500 rose 1%, effectively offsetting earlier anxieties regarding a naval blockade of Iranian ports in the Arabian Gulf and Gulf of Oman. In Asia, markets also traded higher on the news, despite China reporting a five-month low in export growth of 2.5% for March, contrasted by a 27.8% surge in imports.