Public Markets 8 Hours

Last updated: May 25, 2026, 8:31 PM ET

Commodities & Energy

Gold edged lower as traders weighed developments surrounding a potential U.S.-Iran deal, while simultaneously holding gains on signs the US and Iran were making progress on reopening the Strait of Hormuz and restoring oil flows. This easing of inflation concerns helped gold maintain its position despite mixed signals. Oil markets extended declines as traders spotted progress toward an Iranian deal, with Brent crude dropping roughly 7% on prospects of increased supply. However, investors remained cautious about celebrating too early given the geopolitical uncertainties. As the global gas market grapples with the Strait of Hormuz being all-but closed for nearly three months, traders are fixated on two wildcards: China's demand patterns and extreme weather conditions that could further impact energy prices.

Fixed Income

The Treasury curve flashed a warning as a key yield gap has shrunk to its tightest level in a year, with traders increasingly betting the Federal Reserve may keep interest rates higher for longer under new chairman Kevin Warsh. In Korea, short-term debt is pricing in an excessive number of central bank rate hikes according to NH Amundi Asset Management, creating potential buying opportunities in the market. Hungary's Prime Minister Peter Magyar confirmed plans to sign a political accord with the EU's executive on May 28 regarding the release of frozen funds, potentially easing some financial tensions in the region. Meanwhile, outgoing ECB Governing Council member Francois Villeroy de Galhau stated that a spike in energy costs hasn't yet triggered second-round effects in other parts of the euro-area economy, suggesting underlying inflation may be contained.

Equities & Regional Markets

Asian stocks were poised to extend gains Tuesday as optimism over a potential US-Iran deal lifted risk appetite and sent oil prices lower. The positive sentiment reflected improved market expectations for supply chain stability and reduced geopolitical risk premiums. Ferrari unveiled the Luce, its first all-electric model, targeting the superrich with a $640,000, Jony Ive-designed, glass-clad electric speedster named after the Italian word for light. The Italian sports car manufacturer aims to test the appetite of wealthy buyers as EVs have fallen out of favor in the U.S. market. Ghana's central bank announced plans to increase gold purchases from the West African nation's large-scale producers to 30% of their output from 20%, starting June 1, potentially supporting gold prices amid the ongoing market volatility.