Oil prices fall, markets rise as signs of completion of the US-Iran deal

Global oil prices fell and European and Asian stock markets rose in Friday's trading, driven by a wave of optimism after leaks from a US official confirming that Washington and Tehran have reached a tentative agreement to extend the ceasefire for 60 days and open a new round of talks on Iran's nuclear program, although the deal is still awaiting public confirmation from Tehran and final approval from US President Donald Trump.

Brent crude falls

Brent crude futures fell more than 1 percent to settle near $92.5 a barrel, and West Texas Intermediate crude fell 1.7 percent to $87.40, hitting their lowest levels in a month.

Reuters noted that investors  are  waiting  for the activation of Iran's non-imposition of transit fees in the Strait of Hormuz in exchange for the gradual lifting of the U.S. naval blockade of Iranian ports, amid warnings from analysts at ING that the pace of supply recovery remains uncertain.

European stock indices rebound

European stock indices benefited from the calming atmosphere, with the Euro Stoxx 50 index rising 0.5% at the open, as inflation data in the eurozone's major economies awaited the European Central Bank's interest rate decision on June 11 .

Shares of Siemens Energy and Rheinmetall led the market gains, and pharmaceutical giant Novo Nordisk received an additional boost after France's decision to offset the costs of slimming drugs.

The drop in oil prices came after weeks of sharp jumps above pre-war levels (Brent was trading at $70 in February before the conflict erupted), due to the near-total closure of the strategic Strait of Hormuz due to the war on Iran, which caused a global energy shock and fueled inflation rates that central banks are trying to curb by raising interest rates.