World stocks stood at record highs on Friday and oil futures eyed the steepest weekly drop for nearly two months as traders waited for details on a potential deal to reopen the Strait of Hormuz and extend the US-Iran ceasefire.Sources told Reuters that the US and Iran have reached an agreement to extend their ceasefire and lift restrictions on shipping, though US President Donald Trump has yet to approve it and Iranian state media said it had not been finalized.
Moves in the Asia morning were modest, with S&P 500 futures steady after the index notched another record closing high overnight. Brent crude futures fell about 50 cents a barrel to US$93.17 for a weekly drop of more than 10 percent.
The dollar headed for a small fall on the week, which tracks a retreat in US yields. Analysts aren't sure, however, whether that can extend, since a US-Iran deal is unlikely to quickly unwind the inflation impulse unleashed by soaring fuel prices.
"The market's already taking the view that a deal's going to be done and the strait is going to be open," said Jason Wong, senior market strategist at BNZ in Wellington.
"The main point is it removes a tail risk of a really, really bad outcome. I don't think it's a green light to take oil down $20, or Treasuries down 20 points."
