Global Markets Stabilize as Iran Peace Talks Advance

European stocks held steady while U.S. S&P 500 futures pared early losses, reflecting a fragile market optimism. Qatari and Pakistani officials confirmed a new roadmap aimed at a final settlement within 60 days, bolstered by Vice President JD Vance’s announcement that Tehran has agreed to resume nuclear inspections. Despite this, Brent crude remains significantly below its May peak of $126.41, with analysts warning that the path toward a long-term deal remains fraught with potential obstacles.

In the UK, the pound and government bonds rallied following Prime Minister Keir Starmer’s resignation, the latest chapter in a volatile decade that has seen seven leaders cycle through Downing Street. While markets eye former Manchester Mayor Andy Burnham as a potential successor, analysts at Monex Europe caution that a change in leadership does little to resolve the underlying fiscal pressures facing the nation. Meanwhile, the Federal Reserve’s recent hawkish shift continues to pressure Treasuries, with yields on 2-year notes climbing to 4.230% as markets price in a 75% probability of a rate hike by September.