Key keywords: Iran ceasefire talks, global stock rally, Brent crude price drop, Middle East geopolitical risk reduction, Fed rate cut expectations, US equities performance, airline sector rally, safe-haven asset correction Global financial markets saw dramatic positive moves on Thursday as verified reports of multilateral-mediated Iran ceasefire negotiations spread across trading floors, fueling a broad equities rally while pushing oil prices to their steepest single-day decline in three months. On Wall Street, all three major indexes closed at fresh 2024 highs: the S&P 500 gained 1.8% to end at 5,621, the Dow Jones Industrial Average rose 420 points, or 1.1%, to 39,864, and the tech-heavy Nasdaq Composite jumped 2.5% as risk appetite surged across sectors. European markets followed the upward trend, with the pan-European STOXX 600 climbing 1.6% led by travel and manufacturing stocks, while Asia-Pacific benchmarks notched solid gains in early Friday trading, with Japan’s Nikkei 225 up 2.1% and Hong Kong’s Hang Seng Index rising 1.9%. Oil markets, which had priced in a 15% risk premium over fears of a wider regional conflict between Iran and Israel that could disrupt shipping in the Strait of Hormuz—through which 20% of global crude supplies pass—experienced a sharp selloff. Brent crude futures fell 4.7% to settle at $82.91 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped 5.1% to $78.32 per barrel, erasing all gains logged since the start of cross-border attacks in the Middle East in late May. Sources close to the negotiations confirmed that envoys from Iran, regional Gulf states, and the United Nations have reached a preliminary framework for a ceasefire that would halt attacks on Red Sea shipping by Houthi forces and de-escalate military tensions between Iran and Israel, with a formal signing expected as early as next Wednesday. The easing geopolitical risks also shifted monetary policy expectations: traders now price in a 68% chance of a 25-basis-point interest rate cut by the U.S. Federal Reserve in September, up from 32% a week ago, as falling oil prices are expected to push headline CPI inflation down by at least 0.3 percentage points in July, easing pressure on the Fed to keep rates high. Airline stocks led the equity rally, with Delta Air Lines and United Airlines climbing 7.8% and 8.2% respectively, as lower fuel costs are set to boost sector profit margins by an estimated 12% in the third quarter. Safe-haven assets cooled amid the risk-on sentiment, with spot gold falling 1.2% to $2,321 per ounce and the U.S. dollar index slipping 0.4% against a basket of major currencies. Market analysts note that while the current rally is supported by tangible progress in ceasefire talks, investors should remain cautious of potential setbacks in negotiations, which could trigger a sharp reversal in both stock and oil prices in the short term.