World stocks stood at record highs on Friday while oil futures eyed the steepest weekly drop in nearly two months, as traders awaited details on a potential deal to reopen the Strait of Hormuz and extend the U.S.-Iran ceasefire.
Sources told Reuters that the U.S. and Iran have reached an agreement to extend their ceasefire and lift shipping restrictions, though President Trump has yet to approve it and Iranian state media said it had not been finalized.
Brent crude futures fell about 50 cents to $93.17 a barrel, heading for a weekly drop of more than 10%. The dollar edged lower for the week.
Analysts are uncertain if the deal can quickly unwind inflation. "The market's already taking the view that a deal's going to be done," said Jason Wong of BNZ. "It removes a tail risk of a really bad outcome."
MSCI's world stock index hit a record high, lifted by AI euphoria. Dell shares surged 39% after hours on strong AI server demand. Federated Hermes revised its S&P 500 target to 8,000 this year and 9,000 next year.
The yen traded at 159.26 per dollar, near the 160 threshold that prompted intervention. The New Zealand dollar gained 1.8% for the week after a hawkish RBNZ outlook.
