Markets Eye Strait of Hormuz Reopening and Warsh's First Fed Meeting as Key Tests This Week

Two developments shaped markets: a potential U.S.-Iran agreement that could reopen the Strait of Hormuz and Warsh’s first Federal Reserve meeting as Chair. Oil prices and equities responded modestly to the peace announcement while traders await confirmation of shipping resumption. Recent data showed goods prices cooling but services inflation elevated, with core PCE inflation around 3.4% annually, above Fed targets.