Oil tankers resumed transiting the Strait of Hormuz after the United States lifted its blockade on Iran and an interim deal to end the three-month war took effect. Brent crude futures fell 1 per cent on Friday to US$79.03 a barrel, down 9.5 per cent for the week. Japan’s Nikkei 225 marked a fifth straight record close and ended the week up 8.5%, while South Korea climbed 3.1% on the day and 15.3% for the week. Markets in mainland China, Hong Kong and Taiwan were closed for holidays.

The Federal Reserve raised its end-2026 PCE inflation forecast to 3.6% from 2.7%, signaling a possible rate hike within the year. The dollar strengthened and US Treasury yields moved higher. Separately, while the US and Iran reached a preliminary agreement, restoring full shipping through the Strait of Hormuz is expected to take time and OECD crude inventories have fallen to the lowest level since 1990. The developments reinforce expectations of tighter oil supply and add upward pressure on crude prices.