Japan's finance minister Katayama said Bessent told her "very good" during her explanation and did not make the demands reported by the media.

Germany's government bond yields are set to rise for a fourth straight week, the longest run since mid-July, as investors price central banks keeping policy restrictive amid resilient growth and persistent inflation. Renewed US-Iran hostilities have lifted Middle East supply risk and pushed oil toward its biggest weekly gain since mid-July. Germany's 10-year bund yield is up about 7.5 bps this week; the 2-year yield is up about 7 bps, its largest weekly rise since mid-July. Traders price the ECB deposit rate at 2.73% by December, implying roughly a 90% probability of another hike after September, and expect the policy rate to reach 3% by September next year.

Russia-appointed authorities said a Ukrainian drone struck a passenger bus in Horlivka in Russian-controlled Donetsk region, killing one civilian and wounding five.