US Stocks Fall as Oil Surges Over $80 on Renewed US-Iran Tensions
U.S. stocks closed lower after renewed U.S.-Iran tensions sent Brent crude briefly above $80, reviving inflation concerns and increasing bets on Fed rate hikes. WTI crude jumped 5.4% to $74.25, while the S&P 500 fell 0.3% and the Dow dropped 1.1%.
Wall Street ended lower on Monday as escalating U.S.-Iran tensions pushed oil prices sharply higher, stoking inflation fears. President Trump said the ceasefire with Iran may be over, and the U.S. military launched a second straight day of strikes on Iran. Brent crude briefly topped $80 a barrel, while WTI crude surged 5.4% to $74.25.
Markets increased bets that the Federal Reserve could raise interest rates by October, as higher oil prices threaten to push inflation higher. The S&P 500 fell 0.3%, the Dow Jones Industrial Average dropped 1.1%, but the Nasdaq 100 rose 0.3% driven by outperformance in chipmakers.
In other markets, Bitcoin and Ether both declined amid a broader risk-off sentiment. The Fed minutes showed some officials saw a case for rate hikes, with policymakers remaining focused on inflation risks amid Middle East uncertainty.
Source: First Squawk