Finance

Oil prices retreated from earlier peaks following reports that diplomatic discussions are underway in New York between U.S. and Iranian negotiators. The talks are centered around a phased agreement to reopen the strategic Strait of Hormuz. The potential deal provided substantial relief to global energy markets and temporarily cooled building inflation anxieties.

The global bond selloff took a brief breather toward the end of the week, with the 10-year U.S. Treasury yield settling near 5.18%. Yields remain pinned near 19-year highs as comments from multiple Federal Reserve officials indicate monetary policy is not on autopilot. Market participants continue to price in a high probability of an additional interest rate hike in October.

Precious metals remained under pressure as the spot price of gold hovered near the $4,300 per ounce mark. The non-yielding asset is facing significant headwinds from a strengthening U.S. dollar, which recently reached a two-month high. Additionally, persistent inflation concerns and rising expectations for restrictive central bank policies continue to limit immediate upward momentum.