Oil markets slipped to a six‑week trough on Tuesday as reports of a tentative US‑Iran memorandum of understanding lifted investor sentiment. Brent crude briefly traded under $86 per barrel, its lowest level since early March, while equity indexes rose and UK gilt yields fell.

Brent Crude Breaches $86 Mark Amid Deal Rumors

According to the source, Brent dipped below $86 per barrel before nudging back above $87, a price range not seen since the early‑March sell‑off. the move reflects traders pricing in the possibility that a diplomatic breakthrough could ease the supply squeeze that has kept oil elevated since the conflict began.

Equity Markets Jump as Inflation Fears Ease

Financial markets responded positively, with the FTSE 100 gaining 1.6% to 10,471.7 and Germany’s DAX and France’s CAC 40 each climbing close to 2%, while U.S. stocks also posted gains, the source notes. Analysts attribute the rally to expectations that a US‑Iran accord could dampen oil‑driven inflation pressures.

Bond Yields Slip on Prospects of Lower Energy Costs

Ten‑year UK gilt yields slipped below 4.8%, the lowest level since April 20, as investors priced in a potential reduction in energy‑related price pressures. The source highlights that the bond market is reacting to the same optimism that is lifting equities.

Trump’s Deal Hints Rekindle Market Optimism

Former President Donald Trump’s recent comments suggesting a near‑term deal have been cited by AJ Bell analyst Dan Coatsworth as a catalyst,noting that markets are not applying a “once bitten,twice shy” stance to his pronouncements.

Unanswered Questions: Timing and Scope of the Memorandum

The source leaves two key points unclear: when a formal agreement might be signed and whether the memo will address broader regional security concerns that could affect oil supply beyond the US‑Iran corridor .