Finance

Despite a brief intra-day stabilization, crude oil prices finished higher amid continued conflicts in the Middle East and reports of ship targeted attacks near the Strait of Hormuz. International benchmark Brent crude consistently traded above the $100 per barrel threshold. Modest relief was observed only after a newly announced bilateral agreement secured alternative diesel supply channels for global markets.

U.S. government bond yields pulled back slightly at the end of the week, with the 10-year Treasury yield closing just under 5.25%. Investors remained cautious following a massive sell-off earlier in the week that had pushed borrowing costs to historical multidecade highs. Fixed-income markets are bracing for a critical array of economic indicators next week, including the Consumer Price Index data.

A preliminary report from the University of Michigan revealed that consumers have raised their projections for near-term inflation to 4.7%. The escalating cost of living has severely strained lower-income households, leading to a sharp drop in consumer confidence. This persistent pricing pressure continues to complicate policy outlooks for the Federal Reserve.