US, Iran Explore Deal to Reopen Hormuz, Saudi Oil Exports Hit War-Time High

The US and Iran are said to be exploring a phased deal to reopen the Strait of Hormuz as diplomatic efforts gain momentum, though negotiations have broken down several times before. Oil turns lower and bonds stabilize, while Saudi crude shipments surge and the kingdom’s oil exports hit a war-time high above 5 million barrels a day, even as flows face risks from Hormuz and the Red Sea. Global bond markets remain under pressure, with the US 30-year yield reaching its highest level since 2004 as investors weigh rising yields and expectations for a potential Federal Reserve rate hike. Wall Street confronts a “new normal” of 5% yields, increasing pressure on consumers and companies. President Donald Trump and Xi Jinping tackle AI and Taiwan at their White House summit. Xi says the US and China should explore new ways to get along and can complement each other, while pushing Trump to oppose Taiwan independence. The leaders also discuss AI, as two pandas prepare to arrive at Atlanta Zoo. Trump raises concerns over the weak yen with Japanese Prime Minister Sanae Takaichi. Elsewhere, UBS considers a potential merger with a foreign bank, Anthropic strikes a $12 billion AI compute deal with Akamai, and Oracle cites force majeure affecting a data center. In the Middle East, the Houthis step up attacks on Saudi Arabia, while Yemen warns that Houthi advances threaten international trade. Salem Bawazir says supporting Yemen is an investment in international peace and security. Iran-UAE flights are halted as US sanctions bite. Israeli Prime Minister Benjamin Netanyahu addresses the UN General Assembly, calling Trump Israel’s greatest partner as he faces October elections. About 100 people are arrested at a New York City protest amid Netanyahu’s feud with Mayor Zohran Mamdani, with Israeli elections scheduled for Oct. 27. NATO’s chief says Europe is ready to respond to hybrid attacks and argues the alliance is much stronger than Russia. He says Vladimir Putin needs to “play ball” on Ukraine, that Kyiv is…