Relief Rally Meets Hawkish Fed Reality as Oil Pulls Back

The market's key narrative this week centers on the signing of a US-Iran peace agreement and the reopening of the Strait of Hormuz. While a move toward peace is generally positive, oil benchmarks have retreated to approximately $80 per barrel.

Despite the relief rally in risk assets, the reality of a hawkish Federal Reserve is beginning to weigh on sentiment. The Fed's tightening stance may limit further upside as traders reassess the macroeconomic outlook.