Finance

Oil prices experienced a significant decline as prospects for a diplomatic agreement between the United States and Iran improved. Brent crude fell roughly 3.4% on Friday after President Trump signaled that a deal to end the conflict and reopen vital trade routes could be finalized soon. This de-escalation of geopolitical tension provided a lift to broader equity markets and eased immediate concerns regarding energy-driven inflation.

The 10-year Treasury yield hovered around 4.5% as investors processed recent producer price index (PPI) data and stronger-than-expected employment figures. While headline inflation has remained high, core measures showed some signs of softening, leading to a cautious outlook for the Federal Reserve's June meeting. Markets are currently pricing in a high probability that the central bank will maintain existing interest rates while keeping a close watch on future labor market resilience.

Digital assets saw a broad recovery on June 12, with Bitcoin reclaiming the $63,000 level and Ethereum posting gains of over 3%. The rally in the crypto sector mirrored the overall improvement in risk appetite following reports of progress in Middle East peace negotiations. However, analysts remain cautious as institutional demand signals, such as the Coinbase Premium Index, suggest a cooling of interest among U.S. professional investors.