This is mostly a repeat to what we’ve heard from earlier in the day, that both sides are eyeing talks on Thursday in Islamabad.

But as the echo chamber gets louder, we’re seeing market players pick up on the optimism and running with it. It’s a funny thing that even though the latest development is essentially a reset to last week, markets are growing even more optimistic of a positive outcome. All this while the Strait of Hormuz remains in de facto closure for longer.

I would argue that reservations are still warranted, not least with there needing to be more positive progress before next week for the oil market. From earlier: Oil prices fall back on renewed hope of a US-Iran deal

But at the same time, it would be bad form to underestimate the odds of a peace deal of sorts here. That especially since US president Trump is wanting to push for it so badly. It feels like we will get there eventually. The only question is how and what happens next on the Strait of Hormuz?

For now, market players are just tuning out the questions and noise but choosing to run with the buzz instead.

The market mood continues to pick up on headlines like these. The dollar is slipping lower across the board while stocks in Europe are kick starting the day on a more positive note. S&P 500 futures are also seen up 0.1% currently. Meanwhile, WTI crude oil is down well over 3% to $95.60 at the moment.

This article was written by Justin Low at investinglive.com.