German government bonds continued to rise, while U.S. Treasuries recouped part of their earlier losses in Asian markets and then stabilized, according to a note from Commerzbank.
Brent crude remained below US$78 per barrel, while major currency pairs traded largely unchanged, said the bank.
President Donald Trump said discussions with Iran are "going well" and that frozen Iranian funds would be used to purchase U.S. agricultural products, according to Commerzbank. Trump reiterated that the U.S. would take whatever steps it deems necessary if Iran doesn't cooperate.
Iranian officials stated that administration of the Strait of Hormuz remains under the country's control, that nuclear issues weren't part of the negotiations and that technical discussions on implementing the memorandum of understanding have concluded, according to Commerzbank.
Earlier, the U.S. granted a 60-day waiver allowing Iran to continue exporting oil.
In Asia, Japan's Finance Minister Satsuki Katayama said she agreed with U.S. Treasury Secretary Scott Bessent that they could take action in currency markets should excessive fluctuations in the yen threaten market stability, the bank said. Separately, an adviser to China's central bank emphasized the need for more aggressive policies to drive consumer spending and support the economy.