Reports of negotiations to reopen the Strait of Hormuz spark a rebound in market risk appetite.

Following reports that the US and Iran are exploring a phased agreement to reopen the Strait of Hormuz, a sudden wave of risk-on sentiment swept through the market. The S&P 500 sharply pared its losses, while crude oil prices and yields retreated from morning highs, with the two-year leading the decline. The Bloomberg Dollar Spot Index also pulled back from its intraday high.