Public Markets 3 Hours

Last updated: May 25, 2026, 8:30 PM ET

Energy & Commodities

Oil futures dropped 1.3% to near $78 a barrel as traders priced in progress toward a U.S.-Iranian ceasefire and the potential reopening of the Strait of Hormuz, which has been largely closed for three months. Gold edged lower from its peak above $2,340 an ounce as the dollar steadied, though holdings remained near historic highs amid lingering inflation concerns. The threat of a scorching Asian summer is adding a new layer of risk, with gas prices vulnerable to a supply crunch as China’s demand and extreme weather could test already-tight global inventories.

Fixed Income & Currencies

The Treasury curve flashed a higher-for-longer warning as the 2-year/10-year spread tightened to its narrowest in a year, reflecting bets that new Fed Chair Kevin Warsh could delay rate cuts. In contrast, South Korean short-term debt offered a buying opportunity according to NH Amundi, which argued the bond market is overpricing in BOK rate hikes. The dollar stabilized against major peers as risk appetite improved on Iran deal hopes, while the yen remained under pressure ahead of further Bank of Japan guidance.

Equities & Deals

Asian stocks were poised to extend gains after the S&P 500 and Nasdaq Composite closed at records, lifted by optimism over a potential U.S.-Iran agreement that could ease energy costs. In Latin America, bids advanced for Brazil’s Copasa privatization as Aegea Investors and Equatorial submitted proposals for the water utility, marking one of the country’s largest public-private partnerships this year. The M&A pipeline remains robust despite geopolitical headwinds, with strategic investors targeting infrastructure assets.

Geopolitics & Risks

Israeli Prime Minister Netanyahu announced plans to intensify attacks on Hezbollah targets in Lebanon, a development that could re-escalate regional tensions and threaten the fragile momentum in U.S.-Iran talks. The conflicting signals from the Middle East kept a floor under crude despite the overall bearish sentiment, while gold’s safe-haven appeal was tempered by deal progress. In domestic U.S. news, a chemical tank explosion threat was lessened in California, though displaced residents criticized confusing official communication.