US stock futures advanced Monday as risk appetite improved on positive developments surrounding US-Iran negotiations. Prospects of shipping resuming through the Strait of Hormuz boosted market sentiment, with S&P 500 futures gaining 0.2% following the index's record high close on Friday. Nasdaq 100 contracts also rose as investors digested geopolitical developments.

Energy markets reacted to the diplomatic progress, with Brent crude declining 2% in early trading. The dollar weakened against most major currencies as traders adjusted positions amid shifting geopolitical risks. Japanese markets remained closed for a holiday, limiting regional trading activity while European and US exchanges experienced increased volume.

The developing US-Iran deal carries significant implications for global energy markets and regional stability. Shipping through the Strait of Hormuz represents approximately 20% of global oil consumption, making any normalization of relations potentially transformative for energy prices and supply chains. Markets will continue to monitor diplomatic progress as investors position for potential changes in geopolitical risk premiums.