Energy markets remained on edge Tuesday as Pakistan's defense minister suggested that the United States and Iran may be nearing an arrangement over the Strait of Hormuz, even as key differences persist. Meanwhile, gold hovered near a two-month high ahead of crucial US inflation data, and Bitcoin continued to slide as investors favored traditional safe havens.
Pakistan sees progress in US-Iran talks
Speaking in Islamabad, Defense Minister Khawaja Asif said the two countries were "close to some sort of arrangement" regarding the strategic waterway, adding that developments were "shaping up in favor of peace." His comments follow reports that negotiations between Iran and Oman on reopening maritime shipping through the Strait have reached an advanced stage, with Pakistan and Qatar acting as mediators.
However, significant hurdles remain. US President Donald Trump has reiterated demands for compensation related to deaths from attacks linked to Iran, while Tehran insists on conditions including the release of frozen assets and compensation for damages. Iranian officials have also stressed that any agreement with Oman would be separate from the broader reopening of the strait, which they say will remain closed until their demands are met.
The uncertainty kept oil prices elevated, with West Texas Intermediate crude trading near $83 a barrel and Brent approaching $89, as traders weighed the possibility of a deal against ongoing disruptions to Middle Eastern energy supplies.
Gold steadies ahead of inflation data
Gold prices held close to their highest level in over two months as investors awaited US consumer and producer price data that could influence the Federal Reserve's next policy move. Spot gold eased 0.4% to $4,370 per ounce after touching an intraday high of $4,434.84, its strongest since June 5. US gold futures settled 0.2% higher at $4,428.90.
According to the CME FedWatch Tool, markets currently price about a 50% chance of a September rate hike and a 79% probability of another increase in December. The upcoming inflation reports are expected to be the week's major catalyst for both traditional and digital assets.
Bitcoin slips as investors rotate to gold
Bitcoin traded below $63,500 on Tuesday, extending its recent weakness as geopolitical concerns and the continued closure of the Strait of Hormuz weighed on risk sentiment. In contrast, gold attracted renewed inflows, with SPDR Gold Shares recording its strongest daily retail inflows since March.
Despite the pullback, data from CryptoQuant showed Bitcoin's 90-day correlation with gold remains elevated. Technical analysts are monitoring resistance around the $65,800 level ahead of Wednesday's US consumer price index report, which could serve as the next major catalyst for crypto markets.
OpenAI loses another senior executive
OpenAI executive Brad Lightcap is leaving the artificial intelligence company after nearly eight years, becoming the latest senior figure to depart the rapidly evolving AI sector. Lightcap, who joined in 2018 and most recently led special projects after serving as chief operating officer, announced his departure in a message to employees.
"It is bittersweet to share that I'll be moving on from OpenAI to start something new," Lightcap wrote. "I feel incredibly fortunate to have spent most of the last decade pursuing our mission and building this company. Sitting here today, mission success feels within sight."
A Barron's report indicated that Lightcap's responsibilities had already shifted away from day-to-day operations, and the company does not expect his exit to affect its daily business. His departure follows several high-profile leadership changes across the AI industry, including at Alphabet and Google DeepMind, reflecting intense competition for top talent. For more on the broader AI landscape, see our coverage of Meta's push for open-source AI and the ongoing AI reshuffle at Alphabet.
As the AI sector continues to evolve, investors are closely watching leadership changes and their potential impact on company strategies. The departure of a key executive like Lightcap could signal shifts in OpenAI's direction as it prepares for its planned initial public offering.
This article is for informational purposes only and does not constitute financial advice.
