Although allied countries are not providing the support requested by Trump for the normalization of the Strait of Hormuz, the market is pricing in a higher probability that the war will end soon, with crude oil prices falling 5% and Treasury yields and equities rising. WTI closed at $94 and Brent at $101, remaining above $100 for the third consecutive session. In equities, the Nasdaq rose 1.5% and the S&P 500 1.1%, while European indices advanced 0.5% on average and in Asia the Hang Seng led the way (+1.45%). In fixed income, yields fell 4-6 bps globally, although U.S. rate futures continue to point to a single 25-bp cut by the Fed this year (vs. the two cuts estimated before the war).

Venezuelan bonds traded flat to up 0.10 points, with slightly stronger demand for longer-dated securities on both yield curves.