Finance

Market sentiment has turned cautious following signals from Federal Reserve Chairman Kevin Warsh that interest rate hikes may be necessary later in 2026 to achieve price stability. Although rates were held steady last week, rising inflation expectations and a solid labor market have led many investors to price in a potential rate increase as early as September.

Crude oil benchmarks fell toward four-month lows as progress in peace negotiations between the United States and Iran encouraged investors. The U.S. government issued a 60-day license for Iranian oil sales, easing supply concerns and leading to increased traffic through the strategic Strait of Hormuz.

Bitcoin and Ethereum saw their values decline as higher interest rate expectations reduced the appeal of speculative assets. Analysts noted a rotation of capital away from the crypto market and into AI-related infrastructure, contributing to Bitcoin dropping toward the $62,000 level.