Donald Trump revived hopes for peace in the Middle East on Thursday evening, stating that he had decided to cancel planned new strikes against Iran, citing the finalization of several points of agreement and the imminent signing of a peace protocol.

The Iranian Foreign Ministry responded by asserting that no final decision had been made regarding the signing of an agreement, but the mention of possible talks between Washington and Tehran was enough to restore investor confidence.

In the wake of these developments, the Dow Jones climbed 3% at yesterday's close, the S&P 500 added more than 1.8%, and the Nasdaq surged nearly 3.3%.

An Imminent Resolution in the Gulf?

According to analysts at Danske Bank, a deal could be finalized as early as this weekend, coinciding with the U.S. President's 80th birthday on Sunday.

"It would focus on reopening the Strait of Hormuz and on guarantees ensuring that Iran ceases the development of its nuclear weapons arsenal," the Danish bank stated.

The prospect of a peace agreement between the U.S. and Iran also encouraged risk-taking in Asia, where the Nikkei index in Tokyo soared 3.2% by the end of the session. The CSI 300 index, which tracks the largest stocks in mainland China, gained more than 1.5%.

Progress in diplomatic negotiations to end the conflict in the Gulf should allow European equity markets to return to positive territory for the week. The CAC currently shows a limited weekly decline of around 0.2%, while the Euro STOXX 50 has shed less than 0.1% since Monday.

A Historic Listing on the Horizon in New York

This renewed optimism is further fueled by the promise of a blockbuster market debut for SpaceX, which is shaping up to be the largest initial public offering (IPO) in history with a valuation approaching $1,750bn. Its first trade is expected around 4:00 PM.

The public listing of the commercial space launch and satellite connectivity specialist will undoubtedly constitute a decisive moment for the markets and a significant test of investor appetite.

"The market is pricing in extreme optimism regarding future growth," warns Ben Ritchie, head of developed market equities at Aberdeen.

"Based on current figures, this translates into a revenue multiple near triple digits," the manager noted.

"For comparison, Nvidia trades at approximately 20 to 25 times its revenue, while mature giants like Apple sit closer to 10 times. This places SpaceX not just at a valuation premium, but in an entirely different orbit," the professional observed.

Breathing Room for Rates and Black Gold

The resurgence of risk appetite is not leading to a rise in government bond yields. In the U.S. market, the 10-year Treasury yield is easing toward 4.46%, while the German Bund of the same maturity remains anchored above 3%.

The euro is down 0.1% at $1.1565 against the dollar following the 25-basis-point rate hike decided by the ECB, which had already been largely priced in by the market.

The relief regarding geopolitical tensions that is supporting the recovery in equities is also reflected in a decline in oil prices, confirming a downward trend that began earlier this week following the increase in OPEC+ production quotas.

Brent crude is currently down 2.2% at less than $88.4 per barrel, and U.S. light crude (West Texas Intermediate, WTI) is shedding 2% to $85.9.