Stocks Whipsawed as Iran War Roils Oil Markets – US Market Wrap
Stocks swung sharply as traders weighed conflicting signals about oil supplies while the war in Iran continues to disrupt global energy markets. In late trading, Oracle jumped after issuing a bullish forecast.
The S&P 500 erased earlier gains. US crude pared a steep drop that briefly pushed prices below $80 after the White House said no tanker had been escorted through the Strait of Hormuz, disputing an earlier social media post by Energy Secretary Chris Wright that was later deleted. Oil still fell about 12%, the biggest decline since 2022, as major economies considered releasing strategic reserves to prevent a supply crunch.
Energy market volatility added pressure on Treasuries alongside concerns about the Iran conflict, a wave of corporate debt issuance and a weak $58 billion US auction. Investors fear that a deeper supply shock could reignite inflation and slow economic growth.
The US and Iran stepped up attacks on the 11th day of the war, while the White House said it is keeping all options open to address energy volatility. President Donald Trump warned Iran against laying mines in the Strait of Hormuz after reports suggested it may already be preparing to do so.
G7 nations also asked their energy agency to prepare scenarios for releasing emergency oil reserves. Oil prices are nearly 40% higher since the start of the year as disruptions to the Strait of Hormuz, which handles about a fifth of global oil flows, intensify pressure on global energy markets.
The S&P 500 slipped 0.2%. West Texas Intermediate settled near $83, while the yield on 10-year Treasuries rose five basis points to 4.15%.
