On Wednesday, US Treasuries experienced a notable increase as investors speculated that a resolution to the Iranian conflict could prompt the Federal Reserve to resume interest rate cuts. Yields on the two-year and 10-year government notes fell by up to 6 basis points, reaching 3.73% and 4.26%, respectively. This market optimism coincided with Brent crude futures dipping below $100 per barrel. Comments from US President Donald Trump indicated that the conflict could conclude within two to three weeks, which may ease financial uncertainties. However, Federal Reserve officials, including President of the Kansas City Fed Jeff Schmid, warned about the inflationary pressures stemming from rising oil prices, which could impact core inflation. Schmid noted that inflation has exceeded the Fed's 2% target for five years, raising concerns that it could remain around 3%. Fed Chair Jerome Powell reiterated the importance of monitoring inflation expectations in light of potential energy shocks. Following these developments, the S&P 500 futures rose 0.5%, while Nasdaq 100 and Dow Jones Industrial Average futures also gained 0.6% and 0.5%, respectively.