Finance

Global energy markets reacted sharply to reports of a potential peace deal between the U.S. and Iran, leading Brent crude to fall over 3% toward $87 per barrel. Investors began unwinding the war risk premium as expectations grew for a reopening of the Strait of Hormuz, providing a tailwind for broader equity markets.

New economic data revealed that annual U.S. consumer inflation accelerated to 4.2% in May, driven largely by elevated gasoline and energy costs. While core inflation remained relatively stable, the headline figure has led market participants to anticipate that the Federal Reserve will maintain high interest rates or potentially consider a hike later this year.

Digital assets saw a period of cautious recovery with Bitcoin hovering around $63,000 after analysts suggested the market may have hit a cycle low. The stabilization was partly attributed to the conclusion of selling pressure linked to capital rotation into the SpaceX IPO, alongside optimism regarding regional geopolitical stability.