Warsh Takes Center Stage at Jackson Hole Amid Oil Price Decline

Oil prices took a hit on Friday, falling for the first time in three weeks. The Brent benchmark dropped 0.6% to $89.2 a barrel, but still managed to lose less than 5% for the week. This decline contributed to a weekly gain of 0.5% in MSCI's all-country world share index.

The index, which tracks global stocks, moved closer to its record high set earlier this month. European shares also rose 0.5% on Friday and are on track for a small weekly gain. Meanwhile, Asia-Pacific shares were slightly higher.

Investors are keeping a close eye on developments in the Gulf, particularly a potential deal between Iran and Oman that would manage traffic through the Strait of Hormuz. However, this agreement would require the US to meet certain conditions set by Iran.

The main event for markets is still to come: Federal Reserve Chair Kevin Warsh's speech at the annual Jackson Hole Symposium. Three Fed officials have already warned about sticky inflation, but Warsh has not provided forward guidance on interest rates. Investors are looking for clarity from Warsh on the Fed's reaction function and how it will balance inflation risks against the labour-market outlook.