Global markets rally after US-Iran MoU, Jefferies warns calm may be temporary

Global financial markets posted strong gains during the week after reports of a US-Iran ceasefire eased Middle East conflict concerns, also triggering a sharp fall in crude oil prices. Jefferies, however, cautioned that the calm may be temporary, arguing the proposed framework offers substantial concessions to Iran including access to frozen assets and possible sanctions relief over a 60-day negotiation period. The report also flagged risks from concentrated AI-related capex approaching 700 billion dollars by US hyperscalers, speculative trading in SpaceX-linked leveraged ETFs generating over 8 billion dollars in turnover, and a more hawkish policy stance from the Bank of Japan which raised rates to their highest level in over three decades.