[MARKET UPDATE] Risk sentiment improves as oil prices trim gains on reports that China in talks with Iran to allow safe oil and gas passage through Hormuz; Equities lifted off lows, USD pulls back, leaving precious metals trimming losses

The reports of China negotiating with Iran to secure safe passage for oil and gas through the Strait of Hormuz suggest a potential easing of tensions in a critical energy transit route. This development has positively impacted risk sentiment, leading to a recovery in equities and a pullback in the USD, while precious metals have also recovered some of their earlier losses. Investors may interpret this as a sign of stability in energy markets, which could influence broader risk assets positively.