German 10-year Bund yields fell to 3.2%, near their lowest level since Aug. 14, as lower oil prices and renewed hopes for reopening the Strait of Hormuz eased concerns about energy disruptions. Iran said it had resumed talks with Oman on managing the waterway. Reuters reported that European Central Bank (ECB, the euro-area central bank) policymakers were prepared to raise rates at their September meeting to contain the economic fallout from the Iran war, but were reluctant to signal additional tightening afterward. ECB board member Isabel Schnabel said rates might need to rise further while the Middle East conflict persists, citing upside inflation risks from the resilient euro-area economy. Money markets priced less than 40 basis points of additional ECB tightening by year-end, with a September rate increase nearly fully priced in.