Global markets experienced a rebound recently as investors grew optimistic about a potential de-escalation in Middle East tensions, particularly regarding the Strait of Hormuz. However, this optimism was tempered by Iran's military control over the strait and ongoing US sanctions. The main focus for markets next week will be the continuation of US-Iran negotiations, with former President Donald Trump warning that failure to reach an agreement by next Wednesday could lead to renewed conflict. Additionally, falling oil prices have eased inflation concerns, leading to a 60% probability of at least one Federal Reserve rate cut by 2026. Investors will be attentive to economic data releases, including US retail sales and jobless claims, which will provide insights into the resilience of the US economy amid geopolitical uncertainties. The Federal Reserve's leadership tone, particularly during Kevin Warsh's upcoming Senate testimony, could also influence market expectations for monetary policy and support risk assets such as Bitcoin and equities.