Stocks Retreat as Hormuz Uncertainty Lifts Oil Ahead of Inflation Data – US Market Wrap

Wall Street remained cautious ahead of key inflation data, with stocks falling as the absence of an agreement to restore energy flows through the Strait of Hormuz pushed oil prices higher.

US crude settled near $83 a barrel after Iran reiterated that the key shipping route will remain closed until its demands are met. Oil had traded lower earlier after Pakistan indicated the US and Iran were nearing an arrangement over Hormuz. The S&P 500 extended its pullback from record highs, while Treasuries edged higher ahead of inflation data expected to show some moderation in consumer prices.

Iranian officials have indicated that Tehran and Oman may be moving closer to an agreement, although it remains uncertain whether any deal would result in the immediate and complete reopening of the Strait of Hormuz.

Trump has recently hardened his position, calling for Tehran to pay reparations for deaths linked to Iranian attacks and domestic unrest. The comments followed a series of Iranian demands that included compensation for alleged US violations of the interim peace agreement.