US, Iran Explore Deal to Reopen Hormuz, Saudi Oil Exports Hit War-Time High

Global financial markets face significant volatility as US Treasury yields reach multi-decade highs, driven by sticky inflation, fiscal expansion, and the massive capital requirements of the AI build-out. While equity markets show resilience, particularly in cash-rich tech sectors, the broader economic outlook remains pressured by rising borrowing costs. Geopolitical tensions continue to dominate, with the Trump-Xi meeting yielding few breakthroughs on trade or Taiwan, and energy markets reacting to the precarious security situation in the Strait of Hormuz and the Red Sea. Saudi Arabia is ramping up oil exports despite persistent Houthi attacks on critical infrastructure. Meanwhile, NATO Secretary General Mark Rutte warns of increasing Russian hybrid threats, urging European nations to bolster defense investments and maintain a position of strength to ensure long-term stability in the face of ongoing conflicts.