Iran Diplomacy & Geopolitics

Iran's 7-Day Plan: Iran’s Foreign Minister announced that Iran has conveyed a concrete 7-day proposal to the US to end the conflict, revive nuclear negotiations, and reopen the Strait of Hormuz. The 7-day period begins once accepted by the US, which Iran claims involves actions already outlined in the MOU.
US & China Engagement: President Trump expressed optimism following discussions with Chinese President Xi Jinping regarding the Iran conflict, while Iran's President welcomed Xi's support for returning to the Islamabad Memorandum of Understanding.

Markets & Financial Indicators

US Market Wrap & Energy: Stock markets rebounded (S&P 500 up 0.5%) and oil prices dropped as diplomatic hopes mounted. Brent crude settled down 2.14% at $104.32/bbl.
MOC Imbalances: Closing order imbalances showed net buying across major indices (S&P 500: +$1.926B, Nasdaq 100: +$1.155B, Dow 30: +$591M, Mag 7: +$794M).
US Banking Data: US bank deposits fell to $19.568 trillion from $19.658 trillion in the previous week.

Federal Reserve Remarks (Hammack): Fed Official Hammack noted that good economic outlook and AI investment demand are pressuring bond yields upward. She emphasized that the Fed needs flexibility, does not see current policy as overly restraining the economy, and highlighted that the US is on an unsustainable fiscal path.
ECB Perspective (Vujcic): ECB's Vujcic mentioned relying less on core inflation as a preferred primary metric following recent economic shocks.

EU Energy Warning: The EU Energy Chief warned member states of an energy price and supply crisis, urging additional measures to reduce power demand or maintain gas storage.
US Diesel Policy: Reports indicate the White House is considering addressing the diesel issue at the state level rather than implementing a full export ban, with an announcement expected soon.

OpenAI Security Review: OpenAI announced a broader review of model actions following a recent Hugging Face incident, noting the process will take months to evaluate lower-severity impacts on third-party services.