Global Markets Steady Amid Iran Conflict Optimism

World stocks remain near record highs despite ongoing geopolitical tensions, driven by optimism around potential de-escalation in the Iran conflict, which could ease oil markets. As global indices rally, bond markets lag, reflecting differing investor confidence levels. Key discussions between U.S. and Iran over the weekend may impact future market dynamics.

World stocks hovered near record highs Friday, poised for a third consecutive week of gains, as optimism built around a potential resolution to the Iran conflict. Despite geopolitical tensions, benchmark oil prices remained below $100 per barrel, amid U.S. President Donald Trump's confidence in imminent peace talks.

U.S. and Iranian negotiators are set to meet over the weekend, generating investor optimism, although the crucial Strait of Hormuz remains mostly closed. This hopefulness helped keep oil prices subdued, even as Brent crude futures dropped nearly 1% to $98.5 a barrel on Friday.

In contrast, bond markets showed less enthusiasm, with government bonds gaining back some ground but still lagging behind buoyant stock indices. Analysts remain cautious, weighing concerns voiced by policymakers against market reactions, and the upcoming negotiations are expected to be pivotal for future developments.

(With inputs from agencies.)