Finance

Oil prices retreated on Friday, offering financial markets crucial relief after a punishing week for energy commodities. West Texas Intermediate and Brent crude benchmarks slid more than 2% after reports emerged that Washington and Tehran are discussing a phased diplomatic agreement. Investors are hopeful the negotiations could lead to the reopening of the crucial Strait of Hormuz within a week, calming regional supply fears.

The University of Michigan's final consumer sentiment reading for September ticked slightly higher to 48.1 from its preliminary figure, yet remained down from August levels. High energy and retail gasoline costs, which have hovered above four dollars a gallon for over two months, continue to weigh heavily on public economic outlooks. The data highlights ongoing consumer anxiety regarding elevated long-term inflation expectations.

Gold prices remained under pressure, hovering around the $4,300 per troy ounce mark. The non-yielding precious metal faced strong resistance from a robust U.S. dollar and soaring Treasury yields. Market sentiment indicates that nearly 69% of investors are anticipating another interest rate increase from the Federal Reserve in October, adding a temporary drag to the asset class.