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.

Oil prices rose on Tuesday and stocks were mixed as investor optimism over an imminent US–Iran peace deal was tempered by new US strikes in the Middle East.

European stock indexes gave up some recent gains on Tuesday and oil prices rose after new US strikes in southern Iran dampened investors' hopes that a US-Iran peace deal could be…