Finance

Brent crude prices dropped below $98 a barrel, while West Texas Intermediate neared $92, following reports of progressing diplomatic talks between Washington and Tehran. Negotiators in New York are discussing a phased agreement aimed at reopening the economically vital Strait of Hormuz. The cooling of energy prices helped alleviate short-term inflation fears that had otherwise kept investors on edge.

A historic selloff in global bonds paused late in the week, allowing the U.S. 10-year Treasury yield to slip down to 5.18% after flirting with its highest levels since 2007. Despite the modest cooling, yields remain deeply elevated following recent hawkish central bank activity. Experts caution that these high borrowing benchmarks continue to exert pressure on consumer lending products, including auto loans and credit cards.

The University of Michigan's latest consumer sentiment figures fell to a four-month low, underscoring ongoing anxiety over long-term inflation. The economic data indicates that while the domestic economy remains resilient, consumers are growing wary of tightening supply lines and persistent price hikes. This cooling sentiment coincides with financial markets pricing in a strong likelihood of another central bank interest rate hike in October.