Key events<\/p>\n
Eurozone bond yields have also dropped slightly, thanks in part to momentary relief over US-Iran peace talk progress, amid hopes it could ease geopolitical tensions and war-related inflation that reduce the prospect of further rate hikes by the ECB.<\/p>\n
The yield on Germany\u2019s benchmark 10-year bond yield was down 2 basis points at 2.966% this morning. (This is after having climbed 6 basis points on Friday after peace talks were abruptly called off)<\/p>\n
It also comes as ECB president Christine Lagarde is due to appear<\/a> in front of European parliament\u2019s Committee on Economic and Monetary Affairs in Brussels this afternoon, starting at 2pm BST.<\/p>\n Her comments will come after the ECB became the first major central bank to raise interest rates<\/a> since the start of the Iran war, earlier this month.<\/p>\n While financial markets had been expecting two more ECB rate rises by next March, the weekend\u2019s peace talks have since tempered those forecasts.<\/p>\n Share<\/a>Brent crude prices at lowest level since March<\/p>\n Oil prices are trading at their lowest level since March, though analysts say it may be too early to peg hopes on a sustained drop in energy prices despite progress in US-Iran peace talks this weekend.<\/p>\n Brent crude prices are at their lowest level since March. Illustration: Refinitiv<\/p>\n Stephen Innes, an analyst with SPI Asset Management, says it is important \u201cnot to overcook Monday\u2019s oil move\u201d :<\/p>\n double quotation markBrent shorts had built meaningfully last week, so part of the early upside looks like traders taking risk down rather than launching into a full-blown conflict trade.<\/p>\n When positioning has leaned too far into calm, it does not take much tension to force a little oxygen back into the price. That is less a declaration of war than a reminder that carrying shorts into a geopolitical negotiation is rarely a comfortable overnight position.<\/p>\n Share<\/a><\/p>\n Patrick Wintour and Jonathan Yerushalmy <\/p>\n Iran\u2019s foreign minister has declared \u201cprogress\u201d after the first day of talks between high-ranking officials from Washington and Tehran ended in Switzerland, despite a tense opening marked by Donald Trump<\/a> threats to restart attacks.<\/p>\n A joint statement from mediators Qatar and Pakistan said the \u2060US and Iran agreed to a roadmap towards\u2060 a final deal within 60 days. Technical talks between lower-ranked officials \u200bwill continue for the rest of the week, according to the statement, with fighting between Israel and Iran-backed Hezbollah<\/a> in Lebanon at the top of the agenda.<\/p>\n \u201cPakistani and Qatari mediation has delivered major progress to end Lebanon<\/a> war,\u201d said Abbas Araghchi, the Iranian foreign minister, after talks broke up just after 3am local time (1am GMT).<\/p>\n US vice-president JD Vance next to Pakistan\u2019s prime minister Shehbaz Sharif and Qatar\u2019s prime minister\u00a0and minister for foreign affairs Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani at the start of a quadrilateral meeting between the US, Iran, Pakistan, and Qatar at the Lake Lucerne Summit, on Sunday. Photograph: Getty Images<\/p>\n The joint statement said the US and Iran<\/a> agreed to establish a \u201ccommunication line\u201d to avoid incidents in the strait of Hormuz, and to set up a \u201cdeconfliction cell\u201d with Lebanon\u2019s government to ensure the \u201cadherence of the termination of military operations in Lebanon\u201d.<\/p>\n In a development that is critical to unlocking progress, the US Treasury was also preparing to issue a 60-day waiver lifting sanctions on oil, petrochemicals and derivatives. Iran<\/a> said this meant its central bank would be able to sell oil to customers, principally China, and receive payments without the threat of sanctions.<\/p>\n Qatar and Iran also signed a memorandum about the release of Iranian assets frozen in Qatar bank accounts due to US secondary sanctions. It was not clear whether the US had placed any restrictions on Iran\u2019s use of the assets, such as demanding the money only be spent on humanitarian goods.<\/p>\n The economic measures may help lift some of the pressure in Iran\u2019s exchange markets, and gradually slow runaway inflation, the country\u2019s biggest domestic concern at present.<\/p>\n Read more here:<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.40 EDT<\/p>\n European stocks are kicking off the week on a positive note, amid news of progress on US-Iran peace talks.<\/p>\n Here\u2019s how they are looking at the start of trading:<\/p>\n FTSE 100 is up 0.11%<\/p>\n France\u2019s CAC 40 is up 0.15%<\/p>\n Spain\u2019s IBEX is up 0.08%<\/p>\n Germany\u2019s Dax is up 0.22%<\/p>\n Pan-European Stoxx 600 is up 0.11%<\/p>\n