Democrats Demand Ethical Amendments to CLARITY Act
The US Senate Banking Committee has released a new version of the CLARITY Act, a cryptocurrency regulation bill. While Chairman Tim Scott praised it as "good faith work" aimed at consumer protection and fighting illicit finance, Democrats are critical of its ethical shortcomings.
The bill offers legal certainty for DeFi developers and restricts stablecoin issuers from paying interest that makes them resemble bank deposits. Coinbase CEO Brian Armstrong called these terms a compromise.
However, a major point of contention is the absence of provisions addressing conflicts of interest for officials. Democrats insist on banning public servants from profiting from crypto assets, citing claims of the Trump family earning $1.4 billion from crypto deals. Earlier amendments proposing such bans were not included.
The US Senate Banking Committee has released a new version of the CLARITY Act, a cryptocurrency regulation bill. While Chairman Tim Scott praised it as "good faith work" aimed at consumer protection and fighting illicit finance, Democrats are critical of its ethical shortcomings.
The bill offers legal certainty for DeFi developers and restricts stablecoin issuers from paying interest that makes them resemble bank deposits. Coinbase CEO Brian Armstrong called these terms a compromise.
However, a major point of contention is the absence of provisions addressing conflicts of interest for officials. Democrats insist on banning public servants from profiting from crypto assets, citing claims of the Trump family earning $1.4 billion from crypto deals. Earlier amendments proposing such bans were not included.
Bitcoin Climbs Past $80K Amid US Regulatory Push, Global Tensions Weigh
Bitcoin rose 0.6% to $80,351.5 after US lawmakers advanced the "Clarity Act," aiming for a comprehensive crypto regulatory framework. This legislative progress fueled overnight strength, pushing the world's largest crypto above the $80,000 mark.
However, gains were capped by broader market caution. Uncertainty surrounding US-China trade talks, where semiconductor controls weren't discussed, and President Trump's hawkish stance on Iran, warning of further military action without a peace deal, tempered investor enthusiasm. These geopolitical concerns, alongside inflationary worries from the Iran conflict, limited crypto's upward momentum. Altcoins generally saw muted performance.
Bitcoin rose 0.6% to $80,351.5 after US lawmakers advanced the "Clarity Act," aiming for a comprehensive crypto regulatory framework. This legislative progress fueled overnight strength, pushing the world's largest crypto above the $80,000 mark.
However, gains were capped by broader market caution. Uncertainty surrounding US-China trade talks, where semiconductor controls weren't discussed, and President Trump's hawkish stance on Iran, warning of further military action without a peace deal, tempered investor enthusiasm. These geopolitical concerns, alongside inflationary worries from the Iran conflict, limited crypto's upward momentum. Altcoins generally saw muted performance.
Private Credit Funds Slash Loan Values Amid Rising Borrower Stress
Private credit funds have marked down over 10% of their loans by at least 50%. This signals "deep distress" as corporate borrowers in the $3.5 trillion market struggle with growing debt burdens due to sustained high interest rates.
Writedowns are at their highest since the pandemic, with smaller funds seeing 13% of loans valued below 50 cents on the dollar. Major firms like Carlyle and Blackstone are cutting fund values, and regulators warn of systemic risks. Delayed reporting and slumping returns (1.8% in Q4 2025) fuel investor unease, as a third lack trusted private market data.
Private credit funds have marked down over 10% of their loans by at least 50%. This signals "deep distress" as corporate borrowers in the $3.5 trillion market struggle with growing debt burdens due to sustained high interest rates.
Writedowns are at their highest since the pandemic, with smaller funds seeing 13% of loans valued below 50 cents on the dollar. Major firms like Carlyle and Blackstone are cutting fund values, and regulators warn of systemic risks. Delayed reporting and slumping returns (1.8% in Q4 2025) fuel investor unease, as a third lack trusted private market data.
US-Iran War Strains Global Financial Markets
The ongoing Middle East conflict is severely testing global finance. Asian currencies are plummeting, with Indonesia's rupiah hitting a record low, as the region faces critical oil import exposure. Central banks are intervening.
Japan's yen weakens further, burdened by high energy costs despite official support.
A new food shock looms for emerging economies as fertiliser supplies and energy prices surge.
Consumers globally feel the squeeze: US gasoline prices jumped over $4.50/gallon, fueling inflation expectations (ECB survey: 1-year expectations to 4.0%). The airline industry is hit hard; Spirit Airlines ceased operations, and European airline stocks are down 14% due to soaring jet fuel.
Bond markets show renewed fragility. US 10-year Treasury yields are nearing a "danger zone" above 4.5%, signaling instability for equities and credit.
The ongoing Middle East conflict is severely testing global finance. Asian currencies are plummeting, with Indonesia's rupiah hitting a record low, as the region faces critical oil import exposure. Central banks are intervening.
Japan's yen weakens further, burdened by high energy costs despite official support.
A new food shock looms for emerging economies as fertiliser supplies and energy prices surge.
Consumers globally feel the squeeze: US gasoline prices jumped over $4.50/gallon, fueling inflation expectations (ECB survey: 1-year expectations to 4.0%). The airline industry is hit hard; Spirit Airlines ceased operations, and European airline stocks are down 14% due to soaring jet fuel.
Bond markets show renewed fragility. US 10-year Treasury yields are nearing a "danger zone" above 4.5%, signaling instability for equities and credit.
Oil Surges Amid Escalating US-Iran Tensions After UAE Drone Attack
Oil prices jumped over 1% in early Asian trade, with Brent crude reaching $110.71 a barrel, fueled by heightened US-Iran tensions.
A recent drone strike near the UAE's Barakah nuclear plant, reportedly by Iran or its proxies, intensified concerns. US President Trump warned the "clock is ticking" for Iran, while the US and Israel discuss potential military operations.
The ongoing closure of the Strait of Hormuz continues to disrupt global oil shipments, further underpinning crude prices.
Oil prices jumped over 1% in early Asian trade, with Brent crude reaching $110.71 a barrel, fueled by heightened US-Iran tensions.
A recent drone strike near the UAE's Barakah nuclear plant, reportedly by Iran or its proxies, intensified concerns. US President Trump warned the "clock is ticking" for Iran, while the US and Israel discuss potential military operations.
The ongoing closure of the Strait of Hormuz continues to disrupt global oil shipments, further underpinning crude prices.
ECB May Hike Rates Due to Iran War, Says Bundesbank Chief
Bundesbank President Joachim Nagel suggests the ECB may need to raise rates, citing the Iran war and high energy prices. He warns that rate hikes are increasingly likely unless inflation fundamentally changes.
Nagel points to a shift towards an "adverse scenario" in ECB projections. He expects inflation to broaden beyond fuel, with supply shocks impacting all goods over 18 months.
Despite economic pressures, Nagel, a hawkish member, emphasizes the ECB's commitment to price stability. He affirmed their mandate, vowing to "do our job" and keep inflation near 2% in the medium term.
Bundesbank President Joachim Nagel suggests the ECB may need to raise rates, citing the Iran war and high energy prices. He warns that rate hikes are increasingly likely unless inflation fundamentally changes.
Nagel points to a shift towards an "adverse scenario" in ECB projections. He expects inflation to broaden beyond fuel, with supply shocks impacting all goods over 18 months.
Despite economic pressures, Nagel, a hawkish member, emphasizes the ECB's commitment to price stability. He affirmed their mandate, vowing to "do our job" and keep inflation near 2% in the medium term.
Nvidia CEO Jensen Huang Reportedly Joins Trump's China Trip
Nvidia CEO Jensen Huang is set to join President Trump's China visit this week, accompanying over a dozen other U.S. executives. His inclusion, confirmed by insiders, follows his absence from the initial White House executive list.
This occurs as Nvidia's powerful H200 chips have yet to be sold in China, citing difficulties with Chinese government permission, as noted by a U.S. official last month.
Nvidia CEO Jensen Huang is set to join President Trump's China visit this week, accompanying over a dozen other U.S. executives. His inclusion, confirmed by insiders, follows his absence from the initial White House executive list.
This occurs as Nvidia's powerful H200 chips have yet to be sold in China, citing difficulties with Chinese government permission, as noted by a U.S. official last month.
China's April Output & Sales Miss Forecasts
Official data reveals China's industrial output grew 4.1% in April, a slowdown from March's 5.7% and below the 5.9% forecast. Retail sales, a key consumption gauge, rose by a mere 0.2%, sharply decelerating from 1.7% in March and significantly missing the 2% expectation.
Adding to concerns, fixed-asset investment unexpectedly contracted 1.6% in the first four months of the year. This marks a reversal from the 1.7% rise in Jan-March and widely missed economists' predictions for a 1.6% expansion.
Official data reveals China's industrial output grew 4.1% in April, a slowdown from March's 5.7% and below the 5.9% forecast. Retail sales, a key consumption gauge, rose by a mere 0.2%, sharply decelerating from 1.7% in March and significantly missing the 2% expectation.
Adding to concerns, fixed-asset investment unexpectedly contracted 1.6% in the first four months of the year. This marks a reversal from the 1.7% rise in Jan-March and widely missed economists' predictions for a 1.6% expansion.
Unitree Unveils Manned Transformable Mecha GD01
Chinese firm Unitree has revealed the GD01, calling it the world's first production-ready manned mecha. This civilian vehicle, weighing around 500kg with a pilot, features a human cockpit and can move on two or four limbs. Priced from $650,000, a demonstration showed it breaking a concrete wall. The company urges "Friendly and Safe" use.
This launch follows Unitree's recent successes, including G1 humanoid robots performing synchronized flips in December 2025 and a humanoid becoming a monk in Seoul in May 2026. Unitree aims to sell 20,000 humanoids in 2026, a significant jump from 5,500, with its entry-level R1 model costing around $6,000 and available internationally. China is rapidly advancing in the "robot race."
Chinese firm Unitree has revealed the GD01, calling it the world's first production-ready manned mecha. This civilian vehicle, weighing around 500kg with a pilot, features a human cockpit and can move on two or four limbs. Priced from $650,000, a demonstration showed it breaking a concrete wall. The company urges "Friendly and Safe" use.
This launch follows Unitree's recent successes, including G1 humanoid robots performing synchronized flips in December 2025 and a humanoid becoming a monk in Seoul in May 2026. Unitree aims to sell 20,000 humanoids in 2026, a significant jump from 5,500, with its entry-level R1 model costing around $6,000 and available internationally. China is rapidly advancing in the "robot race."
Altman's $2 Billion Stakes in OpenAI Partner Companies Revealed
OpenAI CEO Sam Altman holds over $2 billion in companies that have engaged in business with OpenAI, a court filing shows. This revelation surfaces amidst a lawsuit by Elon Musk, alleging breach of charitable trust and unjust enrichment, alongside scrutiny from US Attorneys General and a Congressional investigation into potential conflicts of interest.
Key holdings include a $1.7 billion stake in Helion Energy and $633 million in Stripe. Altman denies self-dealing, stating he recused himself from relevant discussions, such as the Helion and Reddit deals. Attorneys General are urging the SEC to investigate OpenAI's documents, citing "serious legal questions" regarding Altman's conduct.
OpenAI CEO Sam Altman holds over $2 billion in companies that have engaged in business with OpenAI, a court filing shows. This revelation surfaces amidst a lawsuit by Elon Musk, alleging breach of charitable trust and unjust enrichment, alongside scrutiny from US Attorneys General and a Congressional investigation into potential conflicts of interest.
Key holdings include a $1.7 billion stake in Helion Energy and $633 million in Stripe. Altman denies self-dealing, stating he recused himself from relevant discussions, such as the Helion and Reddit deals. Attorneys General are urging the SEC to investigate OpenAI's documents, citing "serious legal questions" regarding Altman's conduct.
China Solar Exports Surge 60% Despite Tax Refund End
China's solar cell exports surged 60% year-on-year in April, customs data shows. This robust growth occurred despite the government eliminating an export tax refund. April saw 1.34 billion cells shipped, valued at $3.12 billion.
While April's volume declined from March's 1.71 billion cells, the previous month's record was partly due to buyers front-loading before the April 1 tax refund cancellation. Strong demand from Southeast Asia and Africa fueled the continued export performance.
China's solar cell exports surged 60% year-on-year in April, customs data shows. This robust growth occurred despite the government eliminating an export tax refund. April saw 1.34 billion cells shipped, valued at $3.12 billion.
While April's volume declined from March's 1.71 billion cells, the previous month's record was partly due to buyers front-loading before the April 1 tax refund cancellation. Strong demand from Southeast Asia and Africa fueled the continued export performance.
NY Fed Prevails in Appeal Against Puerto Rican Bank Over Venezuela Ties
The Federal Reserve Bank of New York has defeated an appeal by Banco San Juan Internacional (BSJI), a Puerto Rican lender, upholding its cutoff from the U.S. central banking system. The 2nd U.S. Circuit Court of Appeals in Manhattan rejected BSJI's claim for a "master account" in a 3-0 decision.
Its access was cut off over concerns regarding U.S. sanctions and anti-money laundering rules, tied to Venezuela. The court affirmed regional Fed banks' discretion in awarding master accounts to promote financial stability. It also found no "discriminatory animus" despite the bank's Venezuelan ownership, rejecting BSJI's claim of being targeted in a broader "de-banking" campaign against "disfavored" models.
The Federal Reserve Bank of New York has defeated an appeal by Banco San Juan Internacional (BSJI), a Puerto Rican lender, upholding its cutoff from the U.S. central banking system. The 2nd U.S. Circuit Court of Appeals in Manhattan rejected BSJI's claim for a "master account" in a 3-0 decision.
Its access was cut off over concerns regarding U.S. sanctions and anti-money laundering rules, tied to Venezuela. The court affirmed regional Fed banks' discretion in awarding master accounts to promote financial stability. It also found no "discriminatory animus" despite the bank's Venezuelan ownership, rejecting BSJI's claim of being targeted in a broader "de-banking" campaign against "disfavored" models.
THORChain Details $10M Hack, Warns of Scams
THORChain developers confirmed a $10M cross-chain protocol hack. The incident saw 36.75 BTC and ~$7M in EVM tokens stolen across Ethereum, BNB Chain, and Base networks. The protocol was paused, halting trading and liquidity operations.
The attack vector is believed to be a vulnerability in the GG20 TSS signature scheme, allowing an attacker to reconstruct private keys and execute unauthorized transactions.
While the team works on a recovery plan, expected to take days or longer for a full restart, developers emphatically state that __user funds were not affected__.
THORChain warns against numerous fake accounts and scam portals offering refunds, airdrops, or compensation. They stress that no such programs are active, and any claims to the contrary are misinformation or impersonation. Users are urged to exercise extreme caution.
THORChain developers confirmed a $10M cross-chain protocol hack. The incident saw 36.75 BTC and ~$7M in EVM tokens stolen across Ethereum, BNB Chain, and Base networks. The protocol was paused, halting trading and liquidity operations.
The attack vector is believed to be a vulnerability in the GG20 TSS signature scheme, allowing an attacker to reconstruct private keys and execute unauthorized transactions.
While the team works on a recovery plan, expected to take days or longer for a full restart, developers emphatically state that __user funds were not affected__.
THORChain warns against numerous fake accounts and scam portals offering refunds, airdrops, or compensation. They stress that no such programs are active, and any claims to the contrary are misinformation or impersonation. Users are urged to exercise extreme caution.
Iran to Unveil Hormuz Traffic Plan, Collect Tolls
Iran's national security committee head, Ebrahim Azizi, announced a forthcoming mechanism to manage traffic in the Strait of Hormuz. This plan will involve collecting "necessary fees" from commercial vessels and "parties cooperating with Iran." Operators of the "freedom project" will be excluded.
The move follows Iran's effective closure of the waterway since US-Israeli hostilities began in late February. Reports previously suggested tolls could be collected in cryptocurrency, including Bitcoin.
US President Trump strongly opposes Iran's control over Hormuz, advocating for its reopening. He is reportedly considering further military measures against Iran, having rejected recent peace offers and warned the ceasefire is "on life support." Trump continues to demand an end to Iran's nuclear operations.
Iran's national security committee head, Ebrahim Azizi, announced a forthcoming mechanism to manage traffic in the Strait of Hormuz. This plan will involve collecting "necessary fees" from commercial vessels and "parties cooperating with Iran." Operators of the "freedom project" will be excluded.
The move follows Iran's effective closure of the waterway since US-Israeli hostilities began in late February. Reports previously suggested tolls could be collected in cryptocurrency, including Bitcoin.
US President Trump strongly opposes Iran's control over Hormuz, advocating for its reopening. He is reportedly considering further military measures against Iran, having rejected recent peace offers and warned the ceasefire is "on life support." Trump continues to demand an end to Iran's nuclear operations.
US Considers Using Palestinian Tax Funds for Trump's Gaza Plan
The U.S. may ask Israel to divert Palestinian tax revenues, currently withheld, to Donald Trump’s Board of Peace for his Gaza post-war plan. Sources suggest funds could support a US-backed transitional Gaza government, with some to the Palestinian Authority (PA) if reforms are made.
The PA reports $5 billion withheld, fueling a financial crisis. Palestinians fear this move, made without their input, further sidelines the PA, which has no control over Gaza. The Board of Peace, which Israel joined but the PA did not, urged leveraging all resources for the estimated $70 billion plan. Reconstruction planning is advanced, awaiting suitable conditions.
The U.S. may ask Israel to divert Palestinian tax revenues, currently withheld, to Donald Trump’s Board of Peace for his Gaza post-war plan. Sources suggest funds could support a US-backed transitional Gaza government, with some to the Palestinian Authority (PA) if reforms are made.
The PA reports $5 billion withheld, fueling a financial crisis. Palestinians fear this move, made without their input, further sidelines the PA, which has no control over Gaza. The Board of Peace, which Israel joined but the PA did not, urged leveraging all resources for the estimated $70 billion plan. Reconstruction planning is advanced, awaiting suitable conditions.
Bybit Ranks Second in Open Interest, Leads CEXs in OI-to-Volume Ratio
Bybit, the world's second-largest crypto exchange by trading volume, has achieved the second-highest open interest (OI) among major derivatives platforms. An analysis of April 2026 data also reveals Bybit leads all centralized exchanges with the highest OI-to-trading volume ratio at 0.81.
This significant metric underscores strong user position retention and a maturing participant base, including institutional and long-term investors. Yoyee Wang, Head of Institutional and Enterprise Business, noted this reflects deeper, more sustained positioning activity.
Furthermore, Bybit's reserve asset growth outpaced its OI growth compared to January, enhancing reserve support for leveraged positions. The exchange also maintained stable funding rates during market recovery, emphasizing its commitment to liquidity quality and sustainable growth.
Bybit, the world's second-largest crypto exchange by trading volume, has achieved the second-highest open interest (OI) among major derivatives platforms. An analysis of April 2026 data also reveals Bybit leads all centralized exchanges with the highest OI-to-trading volume ratio at 0.81.
This significant metric underscores strong user position retention and a maturing participant base, including institutional and long-term investors. Yoyee Wang, Head of Institutional and Enterprise Business, noted this reflects deeper, more sustained positioning activity.
Furthermore, Bybit's reserve asset growth outpaced its OI growth compared to January, enhancing reserve support for leveraged positions. The exchange also maintained stable funding rates during market recovery, emphasizing its commitment to liquidity quality and sustainable growth.
Warsh's Ambitious Fed Reforms Face Gradual Path
Kevin Warsh is poised to take the helm at the Federal Reserve, bringing a sweeping reform agenda. After 15 years, he aims to reimagine inflation oversight, market interventions, and communication, favoring a more restrained, opaque central banking approach. While a shift in tone could be swift, substantive changes are expected to unfold slowly to prevent market instability.
His anticipated leadership comes amidst recent scrutiny of the central bank's independence. Warsh's immediate challenge involves navigating demands for rate cuts against persistent inflation and robust employment data. He posits that AI-driven productivity gains, a shrunken balance sheet, and alternative inflation measures could justify lower rates.
Kevin Warsh is poised to take the helm at the Federal Reserve, bringing a sweeping reform agenda. After 15 years, he aims to reimagine inflation oversight, market interventions, and communication, favoring a more restrained, opaque central banking approach. While a shift in tone could be swift, substantive changes are expected to unfold slowly to prevent market instability.
His anticipated leadership comes amidst recent scrutiny of the central bank's independence. Warsh's immediate challenge involves navigating demands for rate cuts against persistent inflation and robust employment data. He posits that AI-driven productivity gains, a shrunken balance sheet, and alternative inflation measures could justify lower rates.
Ivory Coast Addresses Cocoa Farmer Unrest
Ivory Coast's Coffee and Cocoa Council (CCC) will dispatch officials to the centre-eastern region to ease tensions after farmers protested last week over unpaid and rotting cocoa stocks. Police used tear gas on protesters in M’Batto who demanded payment.
Farmers report they haven't been paid for main-crop cocoa harvested between October and March, despite a CCC pledge. Unsold stocks accumulated after global prices fell sharply below local rates.
These payment delays are causing significant financial hardship for farmers, forcing some to sell at lower prices, and could negatively impact the next harvest by discouraging producers.
Ivory Coast's Coffee and Cocoa Council (CCC) will dispatch officials to the centre-eastern region to ease tensions after farmers protested last week over unpaid and rotting cocoa stocks. Police used tear gas on protesters in M’Batto who demanded payment.
Farmers report they haven't been paid for main-crop cocoa harvested between October and March, despite a CCC pledge. Unsold stocks accumulated after global prices fell sharply below local rates.
These payment delays are causing significant financial hardship for farmers, forcing some to sell at lower prices, and could negatively impact the next harvest by discouraging producers.
Putin to Visit China After Trump-Xi Beijing Summit
Russian President Vladimir Putin will undertake a state visit to China from May 19-20, immediately following President Xi Jinping's bilateral summit with U.S. President Donald Trump in Beijing. This critical sequence of high-level talks underscores evolving global dynamics.
The visit, at Xi's formal invitation, coincides with the 25th anniversary of the Treaty on Good-Neighbourliness, Friendship and Cooperation. This foundational 2001 pact established a long-term strategic partnership and formalized multi-sector economic coordination between the two nations.
Upcoming discussions aim to significantly expand this framework through new bilateral agreements and a comprehensive joint statement, deepening their overall partnership and strategic cooperation. This move is expected to fortify institutional ties amidst rapidly changing global trade alliances.
Russian President Vladimir Putin will undertake a state visit to China from May 19-20, immediately following President Xi Jinping's bilateral summit with U.S. President Donald Trump in Beijing. This critical sequence of high-level talks underscores evolving global dynamics.
The visit, at Xi's formal invitation, coincides with the 25th anniversary of the Treaty on Good-Neighbourliness, Friendship and Cooperation. This foundational 2001 pact established a long-term strategic partnership and formalized multi-sector economic coordination between the two nations.
Upcoming discussions aim to significantly expand this framework through new bilateral agreements and a comprehensive joint statement, deepening their overall partnership and strategic cooperation. This move is expected to fortify institutional ties amidst rapidly changing global trade alliances.
Trump Organization Scraps A$1.5B Australian Skyscraper, Blames Partner
The Trump Organization has abandoned its plan for a 91-storey, A$1.5 billion skyscraper on Australia's Gold Coast, less than three months after signing a deal with Altus Property Group. Trump blamed Altus for failing to meet "most basic financial obligations."
A spokesperson for Trump stated Altus's CEO cited "world events" for the default, a claim Trump dismissed as a "ploy." The project, Trump's first intended Australian tower, may now proceed without the Trump brand. Local residents had also voiced strong opposition to the development.
The Trump Organization has abandoned its plan for a 91-storey, A$1.5 billion skyscraper on Australia's Gold Coast, less than three months after signing a deal with Altus Property Group. Trump blamed Altus for failing to meet "most basic financial obligations."
A spokesperson for Trump stated Altus's CEO cited "world events" for the default, a claim Trump dismissed as a "ploy." The project, Trump's first intended Australian tower, may now proceed without the Trump brand. Local residents had also voiced strong opposition to the development.
Oil Prices Slip Amid Iran Ceasefire Doubts & Trump's China Summit
Oil prices slipped today, breaking a three-day rally, as investors eyed a teetering Iran ceasefire and President Trump's high-stakes meeting with China's Xi Jinping. Brent crude dropped 0.76% to $106.95, while U.S. WTI decreased 0.65% to $101.52.
Benchmarks largely hovered above $100 since the U.S./Israel attacks on Iran and Tehran's Strait of Hormuz closure. Fading hopes for a lasting U.S.-Iran peace deal dim prospects for re-opening the Strait, vital for a fifth of global oil flow. Trump expressed no need for China's help despite dwindling peace hopes.
The ongoing Iran conflict is straining the U.S. economy; higher oil prices fuel inflation, bolstering expectations for the Fed to hold rates, potentially curbing oil demand. Meanwhile, U.S. crude inventories continue to fall, with official data expected later today.
Oil prices slipped today, breaking a three-day rally, as investors eyed a teetering Iran ceasefire and President Trump's high-stakes meeting with China's Xi Jinping. Brent crude dropped 0.76% to $106.95, while U.S. WTI decreased 0.65% to $101.52.
Benchmarks largely hovered above $100 since the U.S./Israel attacks on Iran and Tehran's Strait of Hormuz closure. Fading hopes for a lasting U.S.-Iran peace deal dim prospects for re-opening the Strait, vital for a fifth of global oil flow. Trump expressed no need for China's help despite dwindling peace hopes.
The ongoing Iran conflict is straining the U.S. economy; higher oil prices fuel inflation, bolstering expectations for the Fed to hold rates, potentially curbing oil demand. Meanwhile, U.S. crude inventories continue to fall, with official data expected later today.