29 June 2026

Citi's latest market update focused on the easing of geopolitical tensions following progress in US-Iran negotiations. The reopening of the Strait of Hormuz helped push WTI crude to around $76.60 per barrel and Brent to $80.57, reducing one of the market's biggest inflation risks.

Meanwhile, the Federal Reserve kept interest rates at 3.50%-3.75%, while initial jobless claims remained around 229,000, reinforcing the picture of a resilient US economy.

Market implications

• Lower oil prices reduce inflation risks

• Interest rates are likely to remain higher for longer

• Economic growth remains resilient

M&A / deal flow implications

• Improved sentiment supports strategic M&A

• Industrial and infrastructure sectors remain active

• Financing conditions continue to stabilise

3 key takeaways

1. Geopolitical risks have eased significantly.

2. The Fed remains cautious on rate cuts.

3. Lower oil prices support dealmaking.