The United States and Iran have signed an interim pact to wind down their war, extending a ceasefire announced in April by another 60 days. This agreement is intended to provide the two sides with additional time to negotiate a final truce.
Global stock markets reacted positively to the development. U.S. stocks rebounded, with the Nasdaq gaining nearly 2% in a reversal from Wednesday's decline. In Asia, key indices in Japan, South Korea, and Taiwan climbed, while other shares remained steady or mixed as investors watched for further details on the agreement.
Energy markets also saw a decline, as Brent crude dropped as much as 1.6 percent and oil traded below $80 a barrel. Gasoline prices continued to fall amid optimism that the reopening of the Strait of Hormuz will restore oil flows and ease inflation pressures.