Strait of Hormuz reopening hopes boost markets

On August 26, 2026, global stock markets edged higher and oil prices fell for a third consecutive day on hopes that the Strait of Hormuz could soon reopen to shipping. Iran and Oman announced discussions on a 'joint temporary navigational corridor' through the strait and agreed to clear it of mines, raising prospects for a breakthrough in the nearly six-month conflict that has disrupted oil supplies and fueled inflation concerns. Brent crude futures slid nearly 3% to $85.95 per barrel, while short-term bond yields dropped, with the 2-year German yield hitting a one-week low. Investors also awaited U.S. inflation data (PCE) and Nvidia's second-quarter earnings, which are seen as a test of the sustainability of the AI spending boom. The U.S. Treasury's expanded debt buyback program has shifted pressure from long-term bond yields to the dollar, reviving the 'debasement trade' and supporting gold and bitcoin near three-month highs. The United States — Federal Reserve's Jackson Hole symposium later this week is also in focus, with market odds for a September rate hike dropping to 36%.