Stocks and bonds rally after Axios reports US Iran closing in on deal

Global markets rallied after an Axios report said the U.S. and Iran are closing in on a one-page memo to end the war. Risk-on flows lifted stocks and sovereign bonds while the dollar slid and oil plunged. Europe’s STOXX 600 jumped about 2.2% with banks and miners leading gains and energy names lagging as oil fell sharply. U.S. 10-year Treasury yields slipped roughly 6 basis points to 4.35%, German 10-year yields fell about 7.5 bps to 2.99% and shorter-term European yields also retraced as markets pared ECB hike bets. The euro and pound each gained roughly 0.6% versus the dollar (EUR/USD ~1.1762, GBP/USD ~1.3618). The moves reflect a rapid shift to risk assets on progress toward de-escalation, with oil-driven sector rotations and lower yields supporting equities and government bonds.