Finance

Global energy markets experienced a steep drop following reports that fresh diplomatic talks are scheduled to open between the U.S. and Iran. Brent crude plunged more than 7% to hover near $81 a barrel after a halt in military strikes boosted expectations that the vital Strait of Hormuz trading route could soon reopen. The decline was further reinforced by a modest increase in oil production quotas enacted by major OPEC+ nations.

U.S. stock indexes secured modest weekly gains as strong corporate earnings and cooling inflation data supported a soft-landing economic narrative. Even as a divided Federal Reserve opted to hold interest rates steady, the equal-weighted S&P 500 notably outpaced its market-cap-weighted counterpart. Market observers noted significant capital rotations moving away from high-beta tech giants into steodier sectors like healthcare, materials, and consumer staples.

In a coordinated market maneuver, the U.S. Treasury Department and Japanese financial authorities intervened to stabilize the weakening yen. The rare joint action involved the selling of euros to buy yen, effectively pulling the exchange rate back to 157 yen per dollar after it touched historic lows. The currency has faced intense pressure throughout the year due to fiscal anxieties and high oil costs linked to broader macroeconomic shocks.