Markets end the week focused on the Middle East, where US-Iran relations continue to influence investor sentiment. Despite geopolitical tensions, including maritime incidents in the Gulf of Oman and stalled ceasefire talks, risk assets have shown remarkable resilience. The S&P 500 and Nasdaq remain near record highs, driven by the technology sector. Conversely, oil prices have climbed above $105 per barrel due to concerns over supply disruptions in the Strait of Hormuz. This rise in energy costs is tempering expectations for rapid interest rate cuts by the Federal Reserve, raising questions about whether current market optimism reflects economic strength or investor complacency.