Oil prices fell and global financial markets steadied on Monday as hints of progress emerged from US-Iran talks in Switzerland, helping calm concerns that negotiations were breaking down.

Brent crude retreated from early gains to trade down 0.4% at $80.17 a barrel while US crude was 1.2% higher at $77.52. Both benchmarks are still significantly below peaks seen during the conflict.

The market response came after Qatar and Pakistan — the mediators — said “encouraging progress” had been made after nearly 18 hours of discussions between US and Iranian officials.

S&P 500 futures trimmed previous losses to trade 0.2% lower, while Nasdaq futures sank 0.3%. In Europe, Euro Stoxx 50 futures fell 0.1%, DAX futures were flat and FTSE futures gained 0.1%.

The top-level meeting comes after a week in which both sides signed a memorandum of understanding which was put to the test over the weekend when Iran said it had shut the Strait of Hormuz accusing Israel of breaking a ceasefire in Lebanon. Mediation in Switzerland has made significant progress in ending the crisis in Lebanon, Iranian Foreign Minister Abbas Araghchi said in a post on X.

Iranian media said the Islamic Republic suspended talks after Trump’s threat, but sources indicated talks continued into the early hours of Monday in Switzerland.

According to a senior U.S. official involved in the talks, the subjects discussed included procedures to ensure the strait remains open and how to enforce the ceasefire between Israel and Hezbollah in southern Lebanon.

economy that relies heavily on agriculture but is in the middle of the Middle East crisis, which its government has assisted in resolving.

This week, Pakistan announced an initial agreement between the warring parties, but it is too late for Sindh’s mango season, which started in June.

Due to declining demand in important countries, such as the Gulf, and skyrocketing shipping costs, mango dealers told AFP they anticipate a minimum 30% decline in export sales this year.

In addition to the financial hardship, local households are delaying purchasing the fruit due to a jump in inflation brought on by the regional crisis, which is lowering domestic sales.

Following large reductions in the price of petrol and diesel, the government has lowered the price of jet fuel, which has raised anticipation for cheaper airfares.

Jet fuel is now priced at Rs238.87 per litre after a price reduction of Rs56.97 per litre, according to reports.

According to sources, a drop in jet fuel prices could result in lower airfares, which would benefit travellers.

This comes one day after the government announced significant price reductions for petrol and diesel, lowering them by Rs74.28 and Rs67.31 per litre, respectively.