Oil prices fell as US President Donald Trump signalled a pause in potential strikes against Iran before next month’s midterm elections, easing concerns about supply disruptions.
Treasury yields remained elevated after a volatile week, while gold held above $4,100 an ounce ahead of key US inflation data.
Meanwhile, Apple shares fell after a report said the company asked suppliers to reduce component orders for its latest iPhone 18 Pro models.
Oil prices fall as concerns over Iran supply disruptions ease
Oil prices edged lower on Friday as markets responded to Trump’s comments about the conflict with Iran and China’s plans to resume refined fuel exports after a brief halt during its Golden Week holiday.
Brent crude futures fell 0.26% to $104.01 a barrel, while US West Texas Intermediate crude declined 0.15% to $91.35. Both benchmarks remained on track to post weekly gains.
Prices have been volatile amid threats to shipping through the Gulf and the Strait of Hormuz, a critical route that carried about 20% of global oil and fuel shipments before the war.
Iran is reviewing the US response to a proposal that would reopen the Strait of Hormuz within seven days, according to a report by Iran’s Tasnim news agency.
Meanwhile, the US continues to impose sanctions targeting individuals, networks and vessels involved in transporting Iranian crude and petroleum products.
Supply disruptions from the Iran war and the Russia-Ukraine conflict have affected refined fuels, particularly diesel.
Hurricane Isaias has added to concerns in the Gulf of Mexico, where producers had shut in about 1.3 million barrels per day of oil production as of Thursday.
Treasury yields remain elevated after volatile week
US Treasury yields were little changed on Friday as investors assessed inflation risks and the outlook for Federal Reserve policy following a week in which longer-dated yields reached their highest levels since 2002.
The 10-year Treasury yield rose more than one basis point to 5.244%, while the 30-year yield slipped slightly to 5.602%. The two-year yield increased more than three basis points to 4.787%.
The moves followed a decline in yields during Thursday’s session.
The US Treasury sold $22 billion in 30-year notes that day, with indirect bidders accounting for more than 72% of the auction, above the average of 68% across the previous 10 auctions.
Federal Reserve Governor Christopher Waller said further interest rate increases might be needed to address persistent inflation, although he indicated that hikes would not necessarily be required immediately.
Investors are monitoring energy prices and upcoming inflation data for clues about the Fed’s next steps.
Gold holds above $4,100 ahead of US inflation data
Gold traded at $4,195 an ounce, up more than 1.4%, after recovering from a decline below $4,100 earlier in the week.
The metal has remained under pressure from elevated bond yields and a stronger US dollar, which can make gold more expensive for overseas buyers. However, continued buying during price declines has helped support the market.
Analysts expect gold to remain sensitive to next week’s US Consumer Price Index report.
Persistent inflation could strengthen expectations of further monetary tightening, while a sustained move above $4,200 could improve the near-term technical outlook.
Market participants are also assessing whether elevated borrowing costs could eventually weaken economic activity or increase pressure on government finances, factors that could support gold over the medium term.
Apple shares fall after reported iPhone component order cuts
Apple shares fell around 1% in trading Friday after a Nikkei Asia report said the company had instructed some suppliers to cut October component orders for the iPhone 18 Pro and iPhone 18 Pro Max by at least 15%.
People cited in the report estimated the reductions could range from 15% to 20%.
The reported cuts come as Apple faces higher memory costs linked to the artificial intelligence boom and concerns that price increases for its latest premium smartphones could weigh on demand.
Apple launched the iPhone 18 Pro models last month, raising prices by $100 globally compared with the previous generation.
The reported adjustments have raised questions about whether demand has met expectations following the launch.
They also add uncertainty around the planned release of Apple’s first foldable iPhone, the $1,999 iPhone Duo, later this month.
An earlier report said initial production of the foldable device remained limited, with Apple targeting production of 8 million to 10 million units this year.
The company could fall short of that target if production does not accelerate.
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