Markets surged on Monday, buoyed by reports that Washington and Tehran are close to finalizing a 14-point memorandum, with both sides expressing optimism about the negotiations. The German DAX and the Euro Stoxx 50 each rose by 2%, while US futures for the S&P 500 and Nasdaq Composite also pointed higher despite the cash markets being closed for Memorial Day. US Secretary of State Marco Rubio indicated that the talks are nearly complete, with only language details left to finalize.

This geopolitical development is significant for financial markets, particularly in the energy sector. Crude oil prices jumped approximately 2%, with WTI at $92 and Brent at $98.30, reflecting concerns over potential disruptions in the Strait of Hormuz amid ongoing tensions. In contrast, gold prices dipped as US Treasury yields rose, indicating a shift in investor sentiment.

For market professionals, the key takeaway is the potential volatility in oil markets and related sectors as negotiations progress, underscoring the importance of monitoring geopolitical developments closely.

Source: xtb.com