Finance

U.S. oil futures extended their strong summer rally to settle at $82.49 a barrel, booking a massive 16% gain for the week. The price surge follows a collapse in the ceasefire between the United States and Iran, sparking fears that critical tanker passages through the Strait of Hormuz will face prolonged disruptions.

Derivatives markets saw a massive wave of activity as traders purchased $2.5 billion in notional bitcoin call spreads targeting a price of $72,000 by the end of July. This heavy option positioning coincides directly with the Federal Reserve's upcoming policy meeting, where investors largely expect interest rates to remain unchanged.

The benchmark 10-year U.S. Treasury yield pulled back to finish Friday at 4.55% after hitting a weekly high of 4.64%. Longer-dated yields dipped following softer domestic inflation data, which led market participants to discount the probability of further Federal Reserve monetary tightening at its next session.