Oil prices fell in early European trade as tankers kept moving through the Strait of Hormuz, while U.S.–Iran talks gained traction. Investors noted that Washington and Tehran opened a communication channel to safeguard passage, a development that lifted Brent crude to $78.94 per barrel before the dip.

The dialogue also touched on sanctions relief for Iranian oil sales and the release of frozen assets, with Iranian negotiator Hossein Ghorbanzadeh signaling progress. A new mechanism was agreed to halt military operations in Lebanon, removing a major obstacle that had stalled earlier peace efforts for investors assessing regional stability and oil supply risks.

Meanwhile, U.S. equity futures mixed, driven by optimism around semiconductors but tempered by weakness in big‑tech names. Micron Technology faces earnings scrutiny, while U.S. Treasury yields and the dollar have risen on expectations of a tighter Fed. Investors will watch May PCE data for clues on inflation trends and potential policy shifts for investors.

Sterling slipped as traders await Prime Minister Keir Starmer’s possible resignation timetable, adding currency volatility to the mix. With oil prices easing and U.S. markets split, the day underscored how geopolitical dialogue and domestic political moves can sway commodity and equity indices alike. Market participants now focus on the next round of data releases today.