Source: Sharecast
According to Axios, citing two US officials and two other sources briefed on the issue, the White House believes it's getting close to an agreement with Iran on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.
It was understood the US expects Iranian responses on several key points in the next 48 hours. Nothing has been agreed yet, but sources told Axios this was the closest the parties had been to an agreement since the war began.
Among other provisions, the deal would involve Iran committing to a moratorium on nuclear enrichment, the US agreeing to lift its sanctions and release billions in frozen Iranian funds, and both sides lifting restrictions around transit through the Strait of Hormuz.
According to Axios, many of the terms laid out in the memo would be contingent on a final agreement being reached, leaving the possibility of renewed war or an extended limbo.
Oil prices took another leg lower after the report and by 1035 BST, Brent crude was down 6.1% at $103.15 a barrel, while West Texas Intermediate was 6.8% lower at $95.25. Oil prices were already weaker, having fallen after Donald Trump said he was pausing ‘Project Freedom’ to open the Strait of Hormuz as "great progress" was being made towards a "complete and final agreement with the representatives of Iran".
The US president said on Truth Social that the operation would be paused for "a short period of time" to see whether or not the agreement can be finalised and signed.
Neil Wilson, UK investor strategist at Saxo Markets, said the Axios report "has ignited fresh optimism that we're moving in the right direction for global energy markets, which is supporting a broad risk-on move".
"All the usual caveats are in place here, but it's a sign of investor positioning in recent days that the market was so quick to react," he added.
European stock markets - which were already sharply higher before the Axios report - extended gains, with the benchmark Stoxx 600 index up 2.1% and the FTSE 100 ahead 2.2% at 1035 BST.