European equities closed broadly higher on Tuesday as investors embraced a stronger risk-on tone fueled by hopes that progress toward reopening the Strait of Hormuz could ease tensions in the Middle East and restore a key global energy supply route. The improving geopolitical backdrop helped send crude oil sharply lower, pushed sovereign bond yields down across Europe and the U.S., and supported another strong session for global equities. Reports suggesting negotiations involving Iran and Oman are advancing toward a framework to resume commercial shipping through the Strait added to the optimism, although key details still need to be resolved. European IndicesItaly (FTSE MIB)***:+1.26% to 53,540.51Germany (DAX)***:+0.77% to 26,202.36France (CAC 40)***:+0.61% to 8,666.64Spain (IBEX 35)***:+0.21% to 20,023.61United Kingdom (FTSE 100):+0.20% to 10,879.37*** Reached new record intraday highs todayIn the European debt market, lower oil prices eased inflation concerns, helping drive yields lower across Europe's major debt markets.Germany 10-year: 3.109% (-4.1 bps)France 10-year: 3.883% (-5.3 bps)UK 10-year: 4.900% (-5.4 bps)Spain 10-year: 3.538% (-5.6 bps)Italy 10-year: 3.863% (-7.5 bps)Switzerland 10-year: 0.374% (-2.7 bps)U.S. Treasury yields are also drove sharply lower:2-year:4.196% (-6.0 bps)5-year:4.331% (-6.7 bps)10-year:4.627% (-5.7 bps)30-year:5.191% (-3.8 bps)The energy market is leading today's risk-on move.WTI Crude:$76.02, $-4.31 or -5.36%. The low has reached $75.16Gold:$4,084.96, +$29 or +0.75%Silver:$59.68, +$1.50 for +2.60%Bitcoin:$63,967, +0.80%As London traders head for the exits, Wall Street remains firmly in control with the S&P and Dow on pace for record closes. Lower oil prices and declining bond yields are providing a powerful tailwind for equities, with investors rotating back into risk assets.🇺🇸 Dow Jones:+1.67% to 54,069 (new record high)🇺🇸 S&P 500:+1.42% to 7,708 (new record high)🇺🇸 Nasdaq Composite:+2.03%🇺🇸 Nasdaq 100:+2.72%🇺🇸 Russell 2000:+1.49%The combination of easing geopolitical fears, sharply lower crude prices, falling global yields, and record highs in both the Dow and S&P 500 has investors embracing a more optimistic outlook. While negotiations over the Strait of Hormuz are not yet complete, markets are increasingly pricing in the possibility that shipping disruptions could ease, removing one of the biggest near-term risks to inflation and global growth. This article was written by Greg Michalowski at investinglive.com.