J.D. Vance has been tapped to lead U.S. negotiations with Iran following a tentative cease-fire agreement, marking a significant shift in diplomatic strategy. The development comes as benchmark U.S. crude futures plunged 16% to $94.41 a barrel, while the Dow Jones Industrial Average jumped 2.8% and the S&P 500 extended gains to a sixth consecutive day.

Treasury yields fell as investors bet lower energy prices could enable the Federal Reserve to cut interest rates later this year. The cease-fire has created an unusual economic scenario where reduced oil prices might prevent a severe recession while keeping inflation elevated enough to delay monetary easing. This delicate balance presents challenges for both markets and policymakers.

The diplomatic breakthrough follows Iran's 10-point demands, including a pause in Israel's conflict with Hezbollah, which White House officials have rejected as outside the cease-fire's scope. Meanwhile, President Trump is considering punitive measures against certain NATO allies deemed unhelpful during the Iran conflict, adding another layer of complexity to international relations.