Finance

Brent and West Texas Intermediate crude futures dropped more than 2% during Friday's session as investors digested news concerning potential U.S. and Iranian negotiations. Market participants are closely watching for any diplomatic breakthroughs that could reopen the Strait of Hormuz, a critical bottleneck for global energy transportation. The dip in oil helped ease immediate inflation concerns that have burdened the broader economy since the outbreak of regional conflict.

The 10-year Treasury yield climbed past 5.2% following a consumer sentiment report before pulling back to settle around 5.17% on Friday. Yields have surged dramatically from sub-4% levels prior to the outbreak of the war with Iran, fueled by large government debt levels and an energy shock. Though the bond sell-off paused late in the week, interest rates remain at their highest marks since 2007, putting continuous pressure on corporate and consumer borrowing costs.

The cryptocurrency derivatives market witnessed approximately $400 million in leveraged positions liquidated over a 24-hour period as Bitcoin pulled back from recent weekly highs. The volatility coincided with the expiration of an estimated $16.6 billion in Bitcoin and Ethereum options contracts. Despite the short-term derivatives shakeout and broader regulatory scrutiny under the proposed GENIUS Act, spot prices for major tokens held relatively stable with strong weekly inflows into spot exchange-traded funds.