Finance

Crude oil benchmarks stabilized on Friday but remained severely elevated following recent attacks on shipping vessels near the strategic Strait of Hormuz. West Texas Intermediate and Brent crude stayed at elevated levels, presenting persistent headwinds for the corporate sector through heightened fuel costs. However, temporary assurances regarding the timing of potential military actions helped calm immediate market fears.

Bitcoin and Ethereum saw a partial recovery on Friday to settle near $82,500 and $2,490, respectively, following a steep mid-week decline that triggered the largest long-side liquidation event in three months. The broader digital asset space found steady footing after political commentary reduced immediate anxieties regarding Middle Eastern geopolitical conflicts. Still, the sector faces broader macroeconomic headwinds as sizable net outflows hit spot Bitcoin exchange-traded funds.

The preliminary University of Michigan consumer sentiment index indicated that U.S. households are raising their expectations for inflation over the next twelve months. Lower-income consumers are reporting heightened financial strain from elevated everyday living costs. These persistent inflationary worries are keeping the pressure on the Federal Reserve, with monetary policymakers hinting that further interest rate hikes could be appropriate before the close of the calendar year.