Finance

Energy markets and Treasury yields slightly retreated from their recent peaks after President Trump declared there would be no military strikes on Iran ahead of the upcoming midterm elections. Despite the brief reprieve and a newly announced global diesel supply deal with Russia, Brent crude maintained a significant geopolitical risk premium, remaining elevated above the $100 per barrel mark.

A preliminary sentiment report from the University of Michigan revealed that domestic consumers have raised their one-year inflation projections to 4.7%. The data highlights a growing financial squeeze felt particularly by lower-income households due to rapid increases in the cost of living since geopolitical conflicts intensified earlier this year.

Delta Air Lines reported summer quarter financial results that fell short of Wall Street estimates, prompting the carrier to lower its annual profit guidance. While consumer travel demand remains resilient, the airline is grappling with a multi-billion dollar increase in fuel expenses driven by high energy prices.