Optimism increased after reports that President Donald Trump had paused nearly two weeks of military operations against Iran to allow additional time for diplomatic negotiations. Oil prices and bond yields retreatThe prospect of renewed diplomacy triggered a sharp decline in crude oil prices, with U.S. crude futures falling more than 6%. Treasury yields also moved lower alongside oil prices, easing concerns about inflation and interest rates ahead of this week's Federal Reserve policy meeting. Tariff concerns limited gainsThe initial rally on Friday was supported by lower oil prices after Reuters reported that Pakistan was exploring ways to help restart U.S.-Iran negotiations. However, crude prices remained well above the lows seen earlier this month as military tensions continued despite diplomatic efforts.