Finance

Global energy markets experienced a notable pullback as Brent crude futures dropped nearly 3% following reports of a nearing peace deal between the U.S. and Iran. The potential reopening of the Strait of Hormuz has eased immediate concerns over a regional energy shock, though market participants remain cautious as diplomatic negotiations continue.

Major U.S. bank stocks saw a sharp uptick, with the Invesco KBW Bank ETF rising 1.7% and Goldman Sachs gaining 3% as long-term yields retreated from recent session peaks. Despite persistent inflation pressures keeping the 10-year Treasury yield near 4.49%, the stabilization of the bond market provided a favorable environment for broader financial services performance.

Investors are bracing for a critical week as the Federal Reserve convenes its first meeting under new Chairman Kevin Warsh. While core producer price index data came in slightly softer than expected, the broader 6.5% year-over-year rise in headline inflation continues to fuel expectations that interest rates will remain elevated for an extended period.