Oil Price Drop Eases Rate Hike Pressure as Markets React to Middle East Conflict Pause

The Federal Reserve's next moves are being closely watched after a pause in Middle East conflict led to a sharp drop in oil prices, easing pressure for interest rate hikes. The decrease in energy prices has alleviated short-term inflation concerns and supported interest rate-sensitive assets.

Commodity markets also reacted positively, with spot gold up 1.36% at around $4,109/ounce and silver increasing by 2.45% to approximately $60.0/ounce. The US dollar index (DXY) remained relatively stable, down 0.3%.

The drop in oil prices has had a significant impact on the cryptocurrency market as well. Bitcoin (BTC) rose by 1.11% to around $65,195, while Ethereum (ETH) increased by 3.65% to approximately $1,974. The total cryptocurrency market cap also saw an increase of 1.7%.

Intel's Q2 earnings exceeded expectations, with revenue reaching $16.13 billion and adjusted EPS of $0.42. The company attributed the growth to strong demand from AI business, which saw a 59% year-on-year increase in revenue. The CEO emphasized that AI is driving unprecedented computing demand, with capital expenditures expected to be significantly higher in 2027.