Iran is reportedly proposing a partial opening of the Strait of Hormuz via Oman’s waters, contingent on progress in U.S. negotiations. While this development has yet to impact crude oil prices, which are stable with Brent just below $95 per barrel and WTI at $88, the geopolitical landscape remains tense as both nations consider extending a ceasefire set to expire next week.

Despite the ongoing conflict in Iran, the U.S. stock indices are reaching new heights; the US500 has surpassed 7,080 points, buoyed by strong corporate earnings. Meanwhile, the EURUSD is testing the 1.1800 level, driven more by Middle Eastern de-escalation hopes than European Central Bank rate hike expectations. Mixed economic data from China, showing better-than-expected GDP growth but disappointing retail sales, adds another layer of complexity to the global market outlook.

Market professionals should monitor the implications of geopolitical tensions on energy prices and the potential for continued stock market strength amid corporate earnings resilience. The upcoming Netflix earnings report could further influence market sentiment.

Source: xtb.com