world-economy

Strait of Hormuz Deal Eases Fed Rate Pressure as Oil Prices Fall

An interim agreement to reopen the Strait of Hormuz has reduced immediate inflation concerns, giving the Federal Reserve greater flexibility in setting interest rates. Oil futures declined sharply as markets priced in the expected deal, which President Trump indicated would be finalized Friday. The agreement addresses a key supply-chain vulnerability that had weighed on policy decisions. Meanwhile, container spot rates on transpacific and Asia-Europe routes continued climbing for a sixth consecutive week, though recent gains have moderated. The Bank of Japan is expected to raise benchmark rates to their highest level since 1995 at its first regular policy meeting held without the governor in attendance. Gold prices slumped to six-month lows as potential Fed rate increases and softer technical signals dimmed bullion's appeal to investors seeking inflation hedges.