Oil prices and stock markets traded cautiously on Friday on preliminary signs that the United States and Iran were nearing a tentative agreement to end the war.
Negotiators discussed a new memorandum of understanding that appeared close to winning approval from both sides, although disagreements remained over several key provisions. A major obstacle was the status of the Strait of Hormuz, a critical trade route for oil and gas tankers from the Middle East.
The potential breakthrough followed a volatile week in which US and Iranian forces exchanged sporadic fire, highlighting the risk of renewed escalation as well as the fragility of the current ceasefire.
