US equity markets advanced over the week, driven by growing optimism surrounding a U.S.–Iran peace agreement — formally signed by President Trump on June 17th at the G7 summit in Versailles — that raised expectations for a reopening of the Strait of Hormuz and an easing of energy supply disruptions that have weighed on markets since the start of the conflict. The S&P 500 rose 1% as investor sentiment improved alongside declining oil prices, supported by strength in the Technology and Industrials sectors. Treasury yields were mixed, with longer-dated yields declining modestly, reflecting some easing of near-term inflation concerns as the prospect of a Hormuz reopening came into view. At his first Fed meeting as Chair, Kevin Warsh held rates steady while signaling a firm commitment to the Fed’s 2% inflation target, reinforcing a more hawkish policy stance. May retail sales rose 0.9% month-over-month, exceeding the 0.6% consensus estimate and marking a fourth consecutive gain, signaling continued consumer strength despite elevated gasoline prices and broader inflation pressures. Taken together, last week highlighted a market navigating a complex backdrop, as easing geopolitical tensions, falling energy prices, and resilient consumer spending provided support, even as persistent inflation and a more hawkish Fed continue to pose meaningful risks.