Overview
- The United States and Iran paused reciprocal strikes over the weekend to create space for diplomacy, and reports say Oman is mediating talks on managing ship transit through the Strait of Hormuz.
- Brent and U.S. crude plunged roughly 5–7%, with Brent briefly below $90 and U.S. crude near $83, as traders dialed back short‑term supply risk priced into oil.
- Global equity futures and bond prices rose as investors trimmed the odds of near‑term Federal Reserve rate hikes ahead of this week’s policy meeting.
- Shipping through the Strait of Hormuz and the Bab al‑Mandeb remained very low and Yemen’s Iran‑aligned Houthi rebels continued attacks, leaving trade routes and supplies vulnerable.
- Reports of U.S. military ammunition strains and the fragile, unconfirmed nature of talks mean the lull could be short‑lived, so markets will closely watch diplomatic progress and any renewed strikes.