Hopes for a deal to reopen the Strait of Hormuz drove Brent crude futures lower, easing pressure on global bond markets. The selloff in government bonds, which had intensified amid inflation concerns and geopolitical tension, began to abate as oil prices slipped. Lower crude prices reduced fears of persistent inflation, giving investors relief after days of rising yields.

Market participants noted that any diplomatic progress on Hormuz could significantly ease energy supply worries, which have been a key driver of bond volatility. The shift in oil sentiment helped stabilize Treasury yields, particularly in the 10-year segment, which had spiked earlier in the week. Analysts said the bond market remains sensitive to energy price swings, but the near-term easing of crude pressures provided a temporary respite.

Overall, the interplay between geopolitical developments in the Middle East and energy markets continued to influence fixed-income trading, with investors closely monitoring Hormuz-related negotiations for further direction.