Finance

Global and domestic oil benchmarks dropped significantly after an announcement that fresh United States and Iran negotiations would begin, seeking to reopen the critical Strait of Hormuz trading route. Brent crude fell more than 7% to near $81 a barrel, easing immediate supply fears. Stock futures edged up in response to the temporary halt in hostilities, though structural inflation worries continue to linger.

The United States Treasury Department coordinated a rare joint intervention with Japanese financial authorities to combat excessive volatility in foreign exchange markets. The coordinated action involved selling euros to buy yen, successfully pulling the exchange rate down from its weakest level since the 1980s. The currency had faced severe downward pressure throughout the year due to elevated oil costs and government spending concerns.

The Federal Reserve's recent decision to hold interest rates steady at 3.5%-3.75% revealed internal fractures, recording the highest number of dissenting votes in a decade. Three central bank officials voted against the pause, warning that delaying interest rate hikes could allow inflation to embed deeper into the economy. This division creates further uncertainty for market participants looking ahead to the upcoming policy meeting.