World Stocks Hit Record Highs; Oil Futures See Steepest Weekly Drop Since April Amid US-Iran Ceasefire Deal Hopes

World stocks reached record highs on Friday, while oil futures were poised for their steepest weekly drop since early April. This occurred as traders awaited details on a potential deal to reopen the Strait of Hormuz and extend the US-Iran ceasefire.

Sources indicated that the US and Iran agreed to extend their ceasefire and lift shipping restrictions, though US President Donald Trump has not yet approved it, and Iranian state media reported it was not finalized. Brent crude futures for July fell 1.1% or $1.04 to $92.67 a barrel, and US oil futures dropped $1.26, or 1.4%, to $87.64 a barrel. Brent plunged 10.5% this week, its steepest decline since the week ending April 6th, while WTI fell 9.2%, the biggest weekly loss since the week ending April 13th.

MSCI’s index of world stocks reached a record high, driven by AI-related euphoria. Dell shares soared 39% in after-hours trade following a revenue outlook upgrade, boosting rival Lenovo. The S&P 500 closed at a record high of 7,563.63 on Thursday, with Federated Hermes revising its S&P 500 target to 8,000 this year and 9,000 next year.

US Treasury yields dipped, with the 10-year yield at 4.44% for a weekly drop of about 15 basis points. In currency markets, the yen traded at 159.31 to the dollar, slightly stronger than the 160 level authorities have been defending. Japan’s finance ministry is expected to publish details on its dollar selling, estimated at around 8.6 trillion yen ($54 billion). The New Zealand dollar rose 1.9% against the greenback after the Reserve Bank of New Zealand held rates steady but issued a hawkish outlook.