Oil Prices Surge as U.S.-Iran Diplomacy Hopes Fade 
South Korea, US Discuss Warship Building Cooperation 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
Wall Street Falls as Treasury Yields Surge, Oil Rebounds on Iran Tensions 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
U.S. 10-Year Treasury Yield Hits 2007 High as Fed Rate Hike Bets Rise 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Add as a preferred source on Google
Oil prices remained relatively stable on Friday as optimism over renewed U.S.-Iran negotiations helped calm market fears, even as supply disruptions in the Strait of Hormuz continued to support prices. Brent crude futures rose 0.7% to $105.81 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 1% to $94.85. Despite the mixed daily performance, both benchmarks are on track for their strongest weekly gains since early March.
Investor sentiment improved after confirmation that U.S. and Iranian officials will meet again for diplomatic talks in Pakistan. The move follows signals from both sides indicating a willingness to pursue a potential agreement. Iran’s Foreign Minister Abbas Araghchi announced a regional tour to coordinate with key partners, while the White House confirmed that senior U.S. representatives would attend the upcoming discussions. Comments from U.S. officials suggesting diplomacy remains a priority briefly pushed oil prices lower during the session.
However, ongoing geopolitical tensions continue to drive the oil market. The prolonged closure of the Strait of Hormuz—a critical global oil shipping route—has significantly reduced supply. According to Goldman Sachs, Gulf oil production has dropped by approximately 14.5 million barrels per day, representing a 57% decline from pre-conflict levels. This supply shock has played a major role in lifting crude prices throughout the week.
Both Brent and WTI have rebounded sharply, gaining over 16% and 12% respectively this week. The rally comes despite a fragile ceasefire and uncertainty around the duration of the conflict. Increased naval activity in the region, including vessel seizures and blockades, has heightened risks to global energy supply chains.
Analysts warn that even if the Strait of Hormuz reopens, oil production may take time to recover fully. Meanwhile, major producers are exploring alternative shipping routes to bypass the disrupted corridor. As geopolitical tensions persist, oil price volatility is expected to remain elevated, keeping investors focused on both diplomatic developments and supply risks.
