Markets retreat slightly after the Fed signals potential rate increases, overshadowing progress in U.S.-Iran maritime talks.
Global stocks edged 0.1% lower on Thursday as concerns over a potential U.S. Federal Reserve rate hike this year offset optimism from a U.S.-Iran agreement reopening the Strait of Hormuz. Oil prices fell 2.8% to $77 a barrel, the lowest since early March, following the deal’s announcement.
The agreement extends a ceasefire by 60 days and resumes toll-free maritime traffic, but analysts warn of lingering uncertainties. European markets saw a sharper decline, with the STOXX 600 down 0.6%, led by energy sector losses despite gains in tech stocks.
Futures and European shares retreated, while Asian markets, including Tokyo and Seoul, hit record highs overnight before paring gains. The Fed’s hawkish stance remains a key driver for investor sentiment.