Oil prices up, US stocks down, on Mideast doubts
Oil prices touched a one-week high on Tuesday and Wall Street finished lower as traders grew more pessimistic about a potential deal to bring stability to the Middle East and reopen the Strait of Hormuz. Uncertainty over the global inflation outlook also weighed. Gold prices retreated from a two-month peak ahead of consumer price data due on Wednesday. The Strait of Hormuz will remain closed as…
Oil prices reached a one-week high on Tuesday as Wall Street closed lower, with traders growing more pessimistic about a potential deal to stabilize the Middle East. The Strait of Hormuz remained closed due to the US not accepting Iran's conditions for ending the conflict. Ron Albahary, chief investment officer at LNW, noted that markets are anticipating a deal, but it's not the final chapter.
The US and Iran have been in a standoff, with the US calling for Iran to pay compensation for those killed in past conflicts. Brent futures rose 1.4% to $88.91 a barrel, while US crude increased 1.3% to $83.20. Analysts predict a potential war of attrition, with markets hovering around $75 to $95 per barrel. On Wall Street, major indices declined slightly, with the Dow Jones Industrial Average dropping 0.3% to 53,791, the S&P 500 falling 0.3% to 7,728, and the Nasdaq Composite slipping 0.6% to 26,445.
The upcoming US July consumer price report could influence expectations for the Federal Reserve's September meeting, with a 50-50 chance of a rate hike.
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