Global stocks advanced while oil prices retreated as investors monitored progress in U.S.-Iran peace negotiations. Bond yields dropped worldwide and the U.S. currency weakened amid optimism that a deal could open critical shipping routes. Markets responded positively to the diplomatic signals, with major indices gaining ground despite geopolitical uncertainty.

Peace talks between Washington and Tehran continue with reports of an agreement in principle for Iran to reopen the Strait of Hormuz. The waterway, crucial for global energy supplies, has been a focal point of tensions between the two nations. The potential deal represents a significant diplomatic breakthrough that could ease supply concerns in oil markets.

The market reaction suggests investors view the potential normalization of relations between the U.S. and Iran as a positive development for global trade. Oil prices remain sensitive to diplomatic progress, with Brent crude falling as talks advance. The dollar's weakness reflects shifting expectations for monetary policy amid improving risk sentiment.