Financial markets faced turbulence amid conflicting reports about a potential peace deal with Iran. The Australian dollar to New Zealand dollar (AUD/NZD) saw its largest single-day decline since 2022, driven by diverging economic signals. The US Treasury auctioned 5-year notes at a yield of 4.182%, slightly higher than previous yields. Former President Donald Trump reiterated his stance that Iran would not receive sanctions relief in exchange for abandoning its enriched uranium program, indicating no progress in negotiations. This was compounded by the White House's denial of Iranian state media claims regarding a draft Memorandum of Understanding (MoU) that suggested a withdrawal of US military forces and lifting of the naval blockade in exchange for reopening the Strait of Hormuz. Despite these geopolitical tensions, US economic data, including the Richmond Fed's composite index, pointed to a resilient labor market, suggesting that the Federal Reserve may not need to cut interest rates further even if oil prices drop due to a deal.