Global markets remain on high alert as oil prices extend their decline following President Donald Trump's tough stance on Iran paired with signals of potential negotiations, while Asian bonds and US Treasury futures move higher.

At the request of the US side, Iranian and American representatives held a three-hour meeting on the sidelines of the United Nations General Assembly and are preparing for follow-up talks. In his address to the assembly, Trump stated he faces a major decision: either reach a deal with Iran to end the war or "quickly destroy Iran," while adding that he believes an agreement could be reached after the midterm elections. Earlier, he noted that US officials had held "very productive" discussions with Iran's special envoy. Brent crude fell 1.2% to around $94 per barrel, heading for its longest losing streak in nearly a year.

The drop in oil prices has eased concerns over inflation, providing some relief to bond markets that had been pressured by yields reaching multi-decade highs. Ten-year government bond yields in both Australia and New Zealand fell by at least 3 basis points, US Treasury futures advanced in tandem, and Asia-Pacific stock indexes edged up 0.1%.

European Markets Open Higher

European equities opened broadly higher, with the Euro Stoxx 50 index rising 0.48%, Germany's DAX climbing 0.36%, the UK's FTSE 100 adding 0.32%, and France's CAC 40 advancing 0.36%.

South Korea's KOSPI rose 0.49%, paring some of its earlier gains, while Japanese markets remained closed for a holiday. S&P 500 futures were little changed. The dollar index extended its winning streak to a fourth session, up 0.1%. The yen slipped 0.1% to 157.56 per dollar. Australia's 10-year bond yield dropped 6 basis points to 5.24%. Brent crude was hovering near $94 a barrel, while West Texas Intermediate crude fell 1.9% to $88.79 per barrel. Gold declined 0.4% to around $4,345 an ounce, and Bitcoin rose more than 1% to approximately $87,200.

Iran Nuclear Diplomacy Takes Center Stage

With a light economic data calendar this week, geopolitical developments surrounding the Iran situation have become the primary focus for traders. Tom Essaye of The Sevens Report noted that market attention will remain fixed on geopolitics — if confirmation of progress toward a US-Iran ceasefire emerges, oil prices and yields could fall further, paving the way for an equity market rebound.

Brent crude is currently hovering near $94 per barrel. The continued pullback in energy prices is expected to alleviate inflationary pressures, offering breathing room for bond markets that saw yields surge to multi-decade highs earlier this month.

Tech Shares Lead Gains as AI Theme Stays Hot

The Nasdaq 100 index notched its first record high since June, powered by semiconductor stocks, as enthusiasm for artificial intelligence investments continues to build.

Meta Platforms drew renewed market attention with the launch of its new AI agent, Muse. Reports indicate that Meta has entered a partnership with Shopify, whose shares surged 7.1% on the day. However, concerns are mounting that AI technology could erode profit margins and fee income for financial brokers, weighing on related financial stocks. In other asset classes, the Bloomberg Dollar Index rose for a fourth consecutive session, gaining 0.1%. Investors are closely monitoring remarks from Federal Reserve Governor Michael Barr, following a warning from another official that inflationary pressures could persist. Gold slipped 0.4% to around $4,345 per ounce, while Bitcoin advanced over 1% to roughly $87,200.