Crude oil prices jumped more than 4% as U.S. President Donald Trump declared that the ceasefire with Iran is “over,” following a series of Iranian attacks on ships passing through the Strait of Hormuz and tit-for-tat strikes between the U.S. and Iran.
Key Highlights
- Crude oil climbed over 4%, triggering an overnight sell-off in Asian markets most exposed to oil shortages
- The U.S. military confirmed a second straight day of strikes on Iranian targets
- Energy stocks were among the few gainers, with Baker Hughes (BKR) and Valero Energy (VLO) up nearly 2%
- Airline stocks including Delta and United Airlines fell more than 3% on rising fuel-cost fears
- The 10-year Treasury yield hit its highest level since late May as inflation concerns resurfaced
Why It Matters
Markets are now pricing in at least one Federal Reserve rate hike by the end of 2026, as renewed Middle East hostilities threaten to reignite energy-driven inflation just as the Fed under Chair Kevin Warsh turns more hawkish.
What to Watch
Investors are tracking developments in the Strait of Hormuz — a critical chokepoint for global oil shipments — along with upcoming U.S. inflation data and earnings from major banks in the coming week.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making investment decisions.
