Markets started the week on a much stronger footing as Brent briefly fell below $100 a barrel on renewed hopes for a diplomatic breakthrough in the Middle East. Trump said he would be open to meeting Iran’s president at the UN, helping drive a sharp fall in oil and European natural gas prices. That eased inflation concerns, supported sovereign bonds and pushed markets to trim some expectations for further rate hikes, particularly in Europe. Overnight, oil recovered somewhat after Bessent threatened tougher sanctions on Iranian airlines and service providers, but the broader tone remains more constructive.Lower energy prices fed directly into risk appetite. The S&P 500 rose 1.4% and moved back to within half a percent of its record high, while the Nasdaq and Magnificent 7 hit fresh records. Meta surged on enthusiasm around its Muse AI agent, while AMD jumped after reaching a $1 trillion valuation. Bond yields fell sharply across Europe, with smaller declines in US Treasuries, while Bitcoin moved back above $85,000. Despite some hawkish Fed commentary, the combination of easing energy prices and renewed AI optimism has kept momentum firmly on the positive side.