Finance

Brent crude prices dropped as investors reacted to reports of a potential peace deal between the United States and Iran, which could restore global oil flows. The prospect of an end to the month-long conflict has provided relief to a market previously rattled by energy-driven inflation and the closure of the Strait of Hormuz.

Market participants expect the Federal Reserve to maintain interest rates at 3.50%-3.75% during next week's meeting, the first to be chaired by Kevin Warsh. Although inflation remains above target at 4.2%, traders have recently shifted expectations toward a potential rate hike in December rather than immediate cuts.

The 10-year Treasury yield declined to around 4.47%, pulling back from recent highs as the risk premium associated with Middle East tensions began to fade. This move effectively erased a previous surge in yields that followed strong labor market data, reflecting a shift in investor focus toward a possible de-escalation in Iran.