Finance

Energy and equity markets experienced brief fluctuations following reports that U.S. and Iranian negotiators are examining a phased plan to resolve their Middle East conflict. The potential agreement involves reopening the Strait of Hormuz in exchange for the lifting of economic blockades, briefly tempering global oil prices before international benchmarks settled higher.

Strong economic data, including a prominent rise in manufacturing output and private sector activity, continues to fuel macroeconomic concerns. Traders are increasingly hedging against a hawkish Federal Reserve, with fed funds futures pricing in significant odds for interest rate increases at both the October and December policy meetings.

Cryptocurrency markets lost ground as the prospect of prolonged high interest rates dampened recent risk-on momentum. Major assets like Bitcoin and Ethereum opened significantly lower, reversing an early-week rally that had pushed digital currencies toward multi-month peaks.