Stocks Slip as Oil Jumps on Fears of Deeper Middle East Escalation – US Market Wrap
A renewed bout of volatility unsettled markets, with equities falling as oil prices rose on concern that the conflict in the Middle East could escalate further and keep the Strait of Hormuz shut for longer, intensifying energy disruptions.
Brent crude climbed above $105 as worries grew that peace talks had stalled, rhetoric was hardening, and military risks were rising. The S&P 500’s rally stalled, with the index dropping as much as 1.3% before trimming part of the decline. In after-hours trading, Intel surged on a strong outlook, helping support semiconductor sentiment after the group logged a 17th straight gain during regular trading.
Tensions remained elevated throughout the session. President Donald Trump ordered the US Navy to target any vessel attempting to place mines in the strait, while the military said it intercepted two oil supertankers that tried to bypass efforts to restrict access to and from Iranian ports.
Later in the day, Trump warned that if Iran does not move oil, its infrastructure would face severe consequences, while also saying the US remains in contact with Tehran and that Americans should expect higher gasoline prices for at least a short period.
Iranian media also reported that air defense systems were activated in parts of Tehran in response to what were described as hostile aerial threats, underscoring the continued instability in the region.
