AI Generated Image
Oil prices gain and stocks are mixed as fighting in the Middle East intensifies
AP News • • business
Key Points:
- Oil prices surged with Brent crude rising 4.1% to $86.73 a barrel and U.S. crude up 3.1% at $80.55, driven by intensified fighting in the Middle East and uncertainty over control of the Strait of Hormuz.
- U.S. futures declined following additional strikes on Iran and President Trump’s announcement of reinstating a blockade on Iran in the Strait of Hormuz, disrupting oil tanker routes and raising global fuel costs.
- Global stock markets showed mixed results: European indexes fell modestly, while Asian markets, including Tokyo’s Nikkei and South Korea’s Kospi, gained, supported by strong Chinese exports and optimism around AI investments.
- On Wall Street, major indexes dropped, led by declines in chip stocks like Micron and Nvidia, amid concerns over whether AI-driven profit growth and valuations are sustainable.
- Investors are closely watching upcoming earnings reports from major U.S. banks amid forecasts of strong S&P 500 profit growth, while rising oil prices raise inflation concerns that could prompt central banks to increase interest rates.
