Markets stabilized last week as investors responded to signs that tensions in the Middle East could eventually ease. This allowed U.S. equities to recover after a difficult stretch. Even so, the path forward remains uncertain, as elevated oil prices, no clear developments in way of a ceasefire agreement, and continued disruption in the Strait of Hormuz has kept volatility higher than normal. The S&P 500 finished the week in positive territory, ending a five-week losing streak, while broader U.S. equity markets posted solid gains despite the ongoing geopolitical headlines. At the same time, Treasury yields moved lower and market expectations for additional Federal Reserve tightening softened, helping improve sentiment across risk assets. Importantly, U.S. economic data remained constructive, with stronger retail sales, manufacturing activity, and payroll trends reinforcing the view that the economy entered this period of stress from a position of relative strength. Looking ahead, the duration of the oil shock remains a key issue for markets. A shorter disruption would likely keep growth intact, while a more prolonged closure could place greater pressure on inflation, earnings, and global economic activity.