US-Iran diplomacy and Argentina-US investment deal drive market activity

European stock markets rose on Friday as diplomatic progress in New York between the United States and Iran improved the investment climate. Iranian President Masoud Pezeshkian expressed a desire for Washington to return to the memorandum of understanding before the midterm elections, stating that a framework has been agreed upon.

Negotiators are reportedly examining a gradual agreement where Tehran would reopen the Strait of Hormuz in exchange for the lifting of US economic sanctions. While oil prices declined on ceasefire expectations, investors remained cautious due to Houthi attacks in Saudi Arabia and reduced traffic through the Strait of Hormuz.

Separately, Argentina and the United States signed a strategic agreement in New York to create the ‘Andes-Atlantic Corridor’. This initiative involves up to $7 billion in investments, with the US Export-Import Bank (EXIM) committing up to $7 billion by 2027 to support priority projects.

The plan focuses on connecting Argentine production sources to Atlantic ports and global markets, specifically targeting liquefied natural gas (LNG) development in the Vaca Muerta region and the extraction of critical minerals in the Puna region of Jujuy and Salta provinces.