Finance

Reports of advancing discussions between U.S. and Iranian negotiators in New York concerning a phased agreement to reopen the Strait of Hormuz provided a substantial reprieve to global markets. Following these geopolitical developments, Brent crude futures slipped below $98 per barrel and West Texas Intermediate drifted toward $92 per barrel. The downward trend in energy prices served as the key catalyst behind the late-week stabilization across risk assets.

The global bond market rout caught a brief intermission as the 10-year U.S. Treasury yield eased back down to 5.18% after climbing toward its highest level since 2007. Easing energy benchmarks allowed fixed-income yields to pull back from their weekly peaks, which directly cushioned equities from further losses. Despite the temporary relief, long-term yields concluded the week substantially higher than where they started, remaining at near 19-year closing highs.

U.S. equities received an additional boost after Federal Reserve officials, including New York Fed President John Williams, delivered measured commentary that calmed aggressive bond market speculation. The central bankers emphasized that monetary policy is not operating on autopilot and will remain strictly tied to incoming macroeconomic data. Market participants continue to digest these remarks alongside resilient consumer sentiment data, keeping future interest rate hikes a highly debated topic.