Meanwhile, Germany's cabinet approved its 2027 budget featuring higher spending and borrowing, and Marine Le Pen was cleared to run in the 2027 presidential race.

Gold consolidated, recovering from an earlier decline as fresh U.S. airstrikes in Iran and shipping disruptions in the Strait of Hormuz jeopardized the regional truce. The escalating friction and revoked Iranian energy waivers pushed crude higher, renewing inflation fears. These safe-haven inflows successfully countered earlier market optimism stemming from soft U.S. employment data ahead of the Federal Reserve policy minutes.

USD/JPY traded just under its multi-decade peak as wide interest rate differentials supported robust dollar demand. While warnings of potential market intervention from Finance Minister Katayama sparked minor short-covering, escalating maritime risks in the Strait of Hormuz reinforced safe-haven inflows to the greenback. Traders remain highly focused on whether the currency pair can breach key overhead thresholds ahead of the Federal Reserve's minutes.

Bitcoin consolidated, climbing roughly 10% from its recent lows as institutional treasury accumulation countered muted retail interest and substantial ETF outflows. Soft U.S. employment figures renewed Federal Reserve rate cut optimism, reinforcing the cryptocurrency's macroeconomic appeal. Ongoing corporate acquisitions and speculation in strategic reserves continue to sustain prices.

Brent crude spiked, advancing over 6% this week following U.S. airstrikes in Iran and revoked energy waivers. The escalations followed drone and missile attacks on Qatari LNG and Saudi oil tankers transiting the Strait of Hormuz, threatening the regional truce. These severe disruptions rapidly reversed previous market supply glut expectations that had been sparked by expanding OPEC+ output.

The  Nasdaq-100 index retreated as rising energy costs and semiconductor valuation fatigue triggered a sharp tech liquidation. Broad weakness in chipmakers dragged the semiconductor sector down significantly, while revoked Iranian oil licenses fueled hawkish Federal Reserve expectations. Additionally, SpaceX fell during a volatile index debut rebalancing, compounding pressure on the technology sector.

The US Dollar advanced against the offshore yuan as persistent Federal Reserve rate expectations and oil-driven inflation countered PBoC stabilization efforts. Divergent economic performance, characterized by resilient U.S. indicators against moderating Chinese export growth, alongside escalating international trade frictions, reinforced defensive dollar demand.