Hormuz Deal Nears Completion, Gold Surges Amid Reduced Energy Price Risk

A significant development in the Strait of Hormuz negotiations has emerged, with Iran and Oman reportedly nearing an interim deal to reopen the strait. The agreement would grant Iran greater control over traffic than it had before the war began, with no tolls charged during the initial period.

US officials are reviewing an air-traffic safety incident involving a military helicopter carrying Trump, while oil prices eased modestly due to diminishing energy price risk. Gold surged back above $4,130 an ounce as inflation expectations trimmed and Fed rate hike odds reduced.

The New Zealand dollar fell after the unemployment rate climbed to an 11-year high, even though other details within the report were less discouraging. The yen strengthened after a garbled Bessent message on the BoJ via NHK capped USD/JPY, alongside data showing Japan real wages rose for a sixth straight month and BoJ minutes supportive of further hikes.