Global equities rallied and oil prices eased as optimism surrounding potential resumption of U.S.-Iran peace talks spread across Asian and European markets. U.S. futures signaled a positive open on Tuesday, buoyed by diplomatic signals suggesting both Washington and Tehran desire continued negotiation. This sentiment briefly eased the geopolitical risk premium built into commodity prices.

Crude benchmarks retreated from recent highs; Brent crude dipped 0.5% to $98.87 a barrel in early European trading, while WTI fell 1.5% to $97.56. Despite the pullback, prices remain elevated year-to-date, partly due to the U.S. blockade on maritime traffic to Iranian ports aimed at increasing pressure on Tehran.

Investor focus now shifts to domestic economic indicators, specifically the release of the U.S. producer price index and the NFIB small-business index, which will offer early reads on inflation and economic strain caused by regional instability. Furthermore, the IMF's global economic forecast is due shortly from Washington D.C. meetings.

Analysts suggest that even with tentative peace efforts, tight supply balances alone are sufficient to keep Brent prices near recent elevated thresholds, limiting the downside impact from diplomatic good news. The dollar concurrently weakened, hitting a six-week low against major peers amid the risk-off sentiment reversal.