Oil Retreats, Gold Pressured as Iran Signals Diplomatic Openness

European markets closed with a broadly positive tone as oil prices eased and equities bounced following Iran's Foreign Ministry indicating that diplomatic efforts remain active despite recent hostilities. Iran confirmed receiving mediation proposals from several parties, raising hopes for a negotiated resolution to the U.S.-Iran crisis. Oil's retreat is reducing near-term inflation fears, though gold remains under pressure as elevated geopolitical risk keeps inflation and rate hike expectations alive. The ECB's Q2 SAFE survey showed inflation and wage growth expectations easing, though upside risks persist, supporting a cautious ECB stance. German producer prices edged lower in June, aided by declining energy costs, adding to signs of disinflation in the eurozone. For forex traders, the combination of easing oil prices and improving risk sentiment favors commodity-sensitive and risk-on currencies, while EUR dynamics remain tied to ECB policy expectations. Traders should watch for further geopolitical headlines and upcoming ECB communications for directional cues on EUR pairs.