Finance

Major U.S. indexes finished higher on Friday, bolstered by reports that the United States and Iran are nearing a peace agreement to end their month-long conflict. The Dow Jones Industrial Average rose 0.7%, while the S&P 500 and Nasdaq Composite gained 0.5% and 0.3% respectively, marking a positive end to the trading week.

Oil prices experienced a significant decline as traders grew confident that a deal to reopen the Strait of Hormuz could be signed as early as Sunday. Brent crude futures settled down more than 3% at $87.33 a barrel, reaching their lowest levels since early March following the cancellation of planned military strikes.

Latest economic reports show U.S. consumer inflation accelerated to an annual pace of 4.2% in May, the third straight month of increases. Despite this pressure, the Federal Reserve is expected to keep interest rates steady at its upcoming June meeting, as officials monitor the potential for energy-related price spikes to broaden across other sectors.