Bonds & Stocks
A standoff between the US and Iran over key issues lifted oil prices, dragging down stocks and bonds on concern that a prolonged closure of the Strait of Hormuz could worsen energy disruptions and fuel inflation. The S&P 500 fell 0.5%. The yield on 10-year Treasuries advanced three basis points to 4.62%
Economy
The global economy is showing signs of waning momentum and mounting inflation pressures during its third month of a war-induced energy crunch. Surveys of purchasing managers from Australia to the Europe pointed to an intensifying ordeal for manufacturing and services companies in May.
World
Iran said the latest proposal from the US has partly bridged the gap between the warring sides, as they seek to turn a fragile ceasefire into a peace deal. Tehran is in the process of responding to a text submitted by the US, which “has narrowed the gaps to some extent,”