Risk assets across the world rallied and oil prices dropped 6% during the European hours following reports of progress in U.S.-Iran peace talks. The reports suggest that Washington and Tehran are close to a one-page memorandum of understanding aimed at ending the war. This could potentially normalize oil flows through the Strait of Hormuz, which has reportedly been mined by Iranian forces. However, some market participants doubt the likelihood of a durable breakthrough, particularly on nuclear concessions.