Castle Securities: Risk of escalation in Iran war diminishes, opportunities for rebound in stock and bond markets.

Castle Securities said that the risk of the worst-case scenario escalation of the Iran conflict is decreasing, creating conditions for a rebound in the stock and bond markets. Despite the ongoing tension in the Middle East, the company's EMEA fixed income sales director, Nohshad Shah, wrote in a client report that Trump's agreement to a two-week ceasefire on April 7 has sent a signal that he is "intending to end this war." Shah wrote, "The contours of the future situation will become clearer in the coming weeks, but for the markets, the most important point is that we seem to have significantly reduced the tail risk of the worst-case scenario."