Finance

Crude oil futures hovered at elevated levels, solidly staying above $100 per barrel amidst ongoing geopolitical tensions in the Middle East. The rise in energy costs has sustained broader market anxieties that inflation will remain sticky. Analysts note that higher fuel prices could prompt the Federal Reserve to keep interest rates restrictive for a longer period.

Following the Federal Reserve's recent decision to raise interest rates by 25 basis points, commentary from central bank officials has reinforced a restrictive policy stance. Remarks from Fed Governor Michael Barr have added to a hawkish market shift. Investors are increasingly pricing in the high probability of an additional interest rate increase before the end of the year.

Market participants are closely tracking international diplomacy as U.S. President Trump prepares for a highly anticipated meeting with Chinese President Xi Jinping. Trade policy is projected to be a core focus of the discussions. Meanwhile, ongoing tensions and lower-level diplomatic negotiations with Iran continue to influence macro market conditions.