Markets Seek Calm as Iran-US Tensions Hold Without Escalation

Global markets are heading toward a calmer end to the week as the US-Iran military standoff remains contained despite President Trump declaring the ceasefire deal 'over.' Both sides continue exchanging limited strikes, but neither appears willing to escalate further, providing relief to risk sentiment. Safe-haven flows into USD, JPY, and CHF that dominated earlier in the week have begun to moderate as traders assess that a full-scale conflict remains unlikely in the near term. However, the situation remains fragile, and any unexpected military escalation could rapidly reverse current positioning. Equity futures are pointing modestly higher, while crude oil has pulled back from weekly highs as Hormuz disruption fears ease. The VIX has declined from midweek peaks, suggesting reduced implied volatility expectations. Traders should maintain heightened awareness heading into the weekend, as geopolitical developments could trigger significant gaps at Monday's open. Near-term, risk-on currencies like AUD and NZD may benefit from continued de-escalation.