1106 GMT - Investor sentiment has improved as markets assess the possibility of further de-escalation between the U.S. and Iran, whether through a broader agreement or an extension of the ceasefire, Columbia Threadneedle Investments' Anthony Willis says in a note. The move lower in oil prices "indicates that markets are placing greater weight on a scenario in which immediate supply risks begin to recede," the senior economist says. This matters for broader markets because lower oil prices reduce the risk that the conflict has on inflation or growth expectations, he says. "For now, markets appear willing to look through near-term headline volatility, reflecting a view that both sides may be moving towards a more durable framework," Willis says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

June 02, 2026 07:07 ET (11:07 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.