U.S. Nears Iran Peace Deal, Anticipating Economic Relief and Potential Fed Rate Cuts

U.S. negotiators are reportedly in the final stages of a peace agreement with Iran, a development expected to lead to the reopening of the Strait of Hormuz and the unfreezing of Iranian assets. White House economic adviser Kevin Hassett indicated that an eventual drop in oil prices resulting from the deal could create an opportunity for the Federal Reserve to lower interest rates. The ongoing war has tested President Trump's economic policy maneuvering, with U.S. Treasury investors focusing on the deal's elusiveness and long-term consequences, leading to elevated bond yields.