MARKET WRAPS

Stocks:

European shares were mostly lower Friday while oil was on track for a weekly gain of nearly 6%.

Oil prices rose as talks over the Strait of Hormuz stalled and the U.S. prepared to send a fresh aircraft carrier to the Middle East.

U.S. Defense Secretary Pete Hegseth told reporters Thursday the U.S. could maintain its blockade of Iranian ports indefinitely because the U.S. can rotate ships in and out.

"The lack of a durable Hormuz agreement and continued threats across both Hormuz and the Red Sea should keep a sizeable geopolitical premium embedded in oil prices," MUFG said.

Meanwhile, gold futures were on track for a weekly loss after a rally this week, with the dip suggesting there has been some profit-taking, MUFG said.

U.S. Markets:

Stock futures were mixed after the major indexes closed higher in the previous session and with the S&P hitting a new record close.

Forex:

The euro rose. The currency looks undervalued against the dollar, supporting the case for a moderate appreciation in the coming weeks, ING said.

The dollar fell as recent U.S. data dampen the prospect of the Federal Reserve raising interest rates.

Bonds:

Yields on U.K. and eurozone government bonds climbed, tracking moves in Treasury yields as higher oil prices increase concerns about the risk of prolonged inflation.

The U.S. sold $25 billion in 30-year Treasurys on Thursday at 5.216%, the highest paid for yields of this maturity since 2001, reflecting concerns over U.S. debt and high inflation. The auction reflected worries over the "growing federal debt burden and inflation that remains above the Fed's target," Danske Bank said. Energy:

Oil prices rose after the U.S. threatened to maintain a naval blockade of Iran indefinitely.

In early European trading, Brent crude gained 1.6%, while WTI futures were up 1.9%.

Metals:

Gold prices were headed for a modest weekly loss as investors took profits after this week's rally. Prices surged above the $4,400 mark this week as softer inflation data reduced expectations of a rate-hike by the Fed in September.

Gold chart

Comex gold futures' uptrend was likely taking a minor pause, based on the daily chart, RHB Retail Research said. Latest price movements suggest that the precious metal was poised for a correction and was pulling back toward the 20-day simple moving average.

Iron ore

Iron ore futures were higher in a temporary rebound after the recent correction. Prices could continue to notch new lows in the next month, Galaxy Futures said.

EMEA HEADLINES

Aviva Posts Strong First-Half Profit Growth

Aviva booked a rise in operating profit in the first half, though it lowered its full-year expectations for its health business.

The British insurer and asset manager reported an operating profit of 1.33 billion pounds, equivalent to $1.79 billion, for the first six months of the year compared with 1.07 billion pounds a year earlier.

BP, XRG Partner on Venezuelan Offshore Gas Development

Britain's BP and the United Arab Emirates' XRG have been awarded an exploration and production license for a Venezuelan offshore gas development.

The Loran field in the Plataforma Deltana area holds an estimated 4 trillion cubic feet of recoverable gas, the companies said late Thursday. The field is part of the Loran-Manatee offshore gas accumulation and straddles the maritime boundary between Venezuela and Trinidad and Tobago.

U.S. Sending Fresh Aircraft Carrier to Middle East Amid Iran War Strain

The U.S. military is preparing to replace the USS Abraham Lincoln with the USS George Washington as part of a scheduled Middle East deployment, U.S. officials said, amid growing concerns over living conditions aboard the Lincoln and the strain on troops during the Iran war.

Several lawmakers say they are concerned about reports of a lack of food and personal supplies aboard the carrier, as well as plumbing backups, as the carrier's deployment stretches into its ninth month.

Ukraine War Disrupts Grain Exports, Putting Food Stocks in Focus

The war in Ukraine is again threatening to spill directly into global food markets.

A major Ukrainian attack on Russia's Black Sea port of Novorossiysk forced two large grain terminals to halt operations Wednesday. Russia is the world's largest wheat exporter, and Novorossiysk is one of its most important outlets to global buyers.

GLOBAL NEWS

Bonds Got Scorched This Summer. 3 Things That Could Make Fall More Miserable.

Summertime and the livin' is easy, as the Gershwin classic goes. Not if you're a bond trader.

The U.S. Treasury market, alongside government bond systems from major economies around the world, has been in a long summer funk that could threaten the recent rally in stocks, cause havoc with the autumn election cycle, and dump added pressure on a Federal Reserve determined to ignore any signals beyond the real economy.

There Aren't Enough Ships to Handle China's Booming Car Exports

China's auto factories are building so many cars for export that the global shipping industry can't keep up.

Specialized car carriers, essentially floating parking garages, are booked out years ahead to export cars from Chinese factories. Rates to charter ships are up 65% this year on the surging demand to move vehicles out of China.

Ukraine War Disrupts Grain Exports, Putting Food Stocks in Focus

The war in Ukraine is again threatening to spill directly into global food markets.

A major Ukrainian attack on Russia's Black Sea port of Novorossiysk forced two large grain terminals to halt operations Wednesday. Russia is the world's largest wheat exporter, and Novorossiysk is one of its most important outlets to global buyers.

U.S. Sending Fresh Aircraft Carrier to Middle East Amid Iran War Strain

The U.S. military is preparing to replace the USS Abraham Lincoln with the USS George Washington as part of a scheduled Middle East deployment, U.S. officials said, amid growing concerns over living conditions aboard the Lincoln and the strain on troops during the Iran war.

Several lawmakers say they are concerned about reports of a lack of food and personal supplies aboard the carrier, as well as plumbing backups, as the carrier's deployment stretches into its ninth month.

Top Democrat Targets Supreme Court for Changes

ATLANTA-House Minority Leader Hakeem Jeffries (D., N.Y.) on Thursday signaled that Democrats would look to overhaul the Supreme Court if they regain power in Washington, nodding to his party's long-running frustration with the court's rightward turn.

In remarks at the National Association of Black Journalists convention in Atlanta, Jeffries said he believes "dramatic Supreme Court reform is necessary" and described the conservative wing of the court as a "subsidiary" of President Trump's Make America Great Again movement. He said there are a "variety of different options that are on the table, and I think we can't foreclose on any single one of them."

Luigi Mangione Is Expected to Plead Guilty in Federal Case

Luigi Mangione is expected to plead guilty Friday in a Manhattan federal court, where he is facing stalking charges in connection with the killing of UnitedHealthcare CEO Brian Thompson outside a Midtown hotel in 2024, people familiar with the matter said.

The expected plea potentially resolves the federal case just a month before Mangione is scheduled to go to trial in New York state court on murder and other charges. But the people familiar with the matter cautioned that Mangione still could change his mind. And his defense team has abruptly shifted strategies previously.

Cuba Throws a Birthday Bash for Fidel as His Legacy Lies in Ruins

Cuba is throwing a weeklong party to celebrate Fidel Castro's 100th birthday on Thursday with ballet performances, poetry and more than 300 academic papers and panel discussions on the impact of "Castro Thought" on everything from education and science to sports.

One missing detail: a functioning electrical grid.

Write to priscila.barrera@wsj.com