Finance

Oil futures fell on Friday following reports that American and Iranian officials are negotiating a potential resolution to reopen the strategically vital Strait of Hormuz. West Texas Intermediate futures slumped roughly 2.3% to settle at $92.41 per barrel, while Brent crude also registered declines. Despite the pullback, the underlying energy sector remains sensitive to fragile truce developments and lingering regional supply risks.

The global selloff in government debt experienced a notable pause late Friday afternoon, tracking the decline in energy benchmarks. The yield on the 10-year U.S. Treasury note retreated slightly to end at 5.18% after climbing as high as 5.22% earlier in the session. Despite the late-day relief, yields finished the week near their highest levels since 2007, propelled by persistent long-term inflation anxieties.

The University of Michigan's consumer sentiment index registered at a final reading of 48.1 for September, reflecting a drop from August's level of 51.7. Elevated energy costs, specifically retail gasoline prices pinned above four dollars a gallon by Middle East conflicts, continue to weigh heavily on consumer outlooks. Additionally, an uptick in long-term inflation expectations among surveyed participants continues to draw close scrutiny from the Federal Reserve.