Oil soars past $113, stocks sell off on Trump's Iran war address

Key Points:

• Oil prices surged significantly, with U.S. crude rising over 10% to above $110 per barrel, driven by fading hopes for a near-term resolution to the Iran war following President Trump's address.
• U.S. stock markets experienced volatile trading, initially dropping but nearly recovering after Iran's deputy foreign minister mentioned plans for a new navigation regime in the Strait of Hormuz post-conflict, injecting some market optimism.
• President Trump indicated the war would continue with additional hard strikes over the next two to three weeks, without outlining a ceasefire plan or a clear path to reopening the Strait of Hormuz, contributing to market uncertainty.
• The national average gas price rose to $4.08 per gallon, up from $2.98 before the conflict, with analysts warning that higher oil prices could soon impact pump prices further.
• Inflation concerns intensified as rising energy costs pushed U.S. Treasury yields higher, with the 10-year yield reaching around 4.37%, amid predictions of a surge in headline inflation and ongoing geopolitical tensions affecting investor behavior ahead of the long holiday weekend.