Finance

Crude oil prices tumbled sharply at the end of the week, giving broader financial markets a crucial bit of breathing room. Brent crude fell below $98 a barrel while West Texas Intermediate crude futures dropped over 2% to settle near $92.41 per barrel. This energy cooldown followed optimistic reports that negotiators are discussing a phased diplomatic deal that could reopen the strategically vital Strait of Hormuz.

The historic, bruising meltdown in the bond market caught a minor break on Friday afternoon as Treasury yields pulled back from their intraday peaks. Earlier in the volatile week, the 10-year Treasury yield surged to a multi-decade high of 5.225% before managing to ease back down to close around 5.18%. Investors remain wary of fixed-income volatility as macroeconomic uncertainty keeps potential interest rate hikes on the table for autumn.

Financial markets closely tracked the high-stakes diplomatic summit between American and Chinese leaders. While the geopolitical discussions yielded limited immediate policy breakthroughs regarding artificial intelligence or long-term trade, the two superpowers successfully agreed to extend their current tariff truce by an additional two months. Investors will be monitoring the release of finer details from the trade negotiations scheduled for early next week.