Finance

Global energy markets reacted sharply to reports of attacks on commercial vessels in the Strait of Hormuz and the reinstatement of U.S. sanctions on Iranian oil. Brent crude oil futures climbed above $75 per barrel, while West Texas Intermediate rose to $71. These geopolitical risks have reintroduced a premium into oil prices, contrasting with the general weakness seen in other asset classes.

The Federal Reserve has kept the federal funds rate at 3.50%-3.75% as new Chair Kevin Warsh signals a move away from traditional forward guidance. While rates remain unchanged for now, market sentiment has shifted toward the possibility of a rate hike by year-end due to persistent inflation and strong economic growth. Internal committee views appear split, with approximately half of the officials projecting at least one more increase in 2026.

The cryptocurrency market showed relative resilience, with Bitcoin and Ethereum opening the day with modest gains of 0.7% and 0.8%, respectively. Bitcoin hovered around the $63,000 mark, supported by corporate treasury purchases that offset significant withdrawals from spot ETFs earlier in the year. Despite the stability in major assets, the broader digital token market remained mixed, with some niche DeFi tokens seeing double-digit surges.