Stocks Edge Higher as Markets Look Past Oil Shock and Iran Conflict – US Market Wrap

Wall Street posted a cautious gain as investors tried to look through the inflation risks tied to higher oil prices, even as the war in Iran showed no signs of easing.

Although most stocks in the S&P 500 advanced, the overall index rose only modestly. US crude pulled back from intraday highs but still settled above $96 a barrel. Airline shares jumped after executives pointed to strong booking demand as travelers moved to secure fares before any fuel-driven price increases. Treasury yields and the dollar both slipped ahead of the Federal Reserve decision.

Geopolitical tensions remained elevated. President Donald Trump stepped back from efforts to rally allies behind the war, while continuing to say the conflict could end soon. The near shutdown of the Strait of Hormuz continued to disrupt energy markets.

Israel said it killed Iran’s security chief, Ali Larijani, in an overnight strike. The announcement followed reports that Tehran had set a major natural gas field in the United Arab Emirates on fire overnight. Trump also threatened to broaden attacks to Kharg Island, Iran’s main oil export terminal.