Mediators between the US and Iran have floated the prospect of a 10-day ceasefire that would lower temperatures between the warring nations in an effort to prompt a return to negotiations, reports CNN citing sources

• "In wasn’t immediately clear how advanced the proposal is. But the sources said the cessation in violence would also include lifting restrictions on the Strait of Hormuz. Iran has fired at commercial vessels attempting to transit the waterway, while Trump has reimposed a naval blockade on Iranian ports."

The proposal of a 10-day ceasefire between the US and Iran could stabilize tensions, particularly impacting energy markets due to the significance of the Strait of Hormuz. While the details are unclear, a de-escalation could lead to lower oil prices and a stronger USD, as geopolitical risk diminishes. Watch how this development influences market sentiment across equities and commodities, especially WTI and gold.