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Stocks rise as oil hits five-week high amid Iran tensions
Brent settled at $91.01 a barrel and WTI at $84.91, while the yen weakened past 163 per dollar for the first time since 1986.
Major stock indexes climbed on Tuesday as Nasdaq outperformed and chipmakers surged, with traders also pushing oil prices higher amid rising tensions in the Iran conflict, according to LiveMint Markets citing Reuters. A semiconductor index ended 5.2% higher after consolidating and bouncing off support following a move that left some investors watching whether second quarter gains are justified by upcoming results.
Oil rose to a five-week high as two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea after threats from Yemen's Iran-aligned Houthis. Brent futures settled up $1.79, or 2.0%, at $91.01 a barrel, while U.S. West Texas Intermediate crude rose $1.68, or 2.0%, to settle at $84.91, marking the highest close for Brent since June 10 and for WTI since June 11.
The currency and rates backdrop also shifted, with the Japanese yen weakening 0.41% against the dollar to 163.14, breaching the 163 level for the first time since December 1986 as traders braced for possible Japanese government intervention. In the same session, benchmark 10-year U.S. Treasury yields reached a two-month high, with the 10-year note yield rising 3.41 basis points to 4.632% and touching 4.640%, the highest since May 20.
Investors were additionally focused on earnings due this week, including results from Intel and Alphabet, as well as whether the AI trade still has room to run after a strong Q2 run-up. Reuters also noted that the Fed held rates steady at its June meeting, but policymakers signaled they expected to raise borrowing costs later this year.
Latest closeWTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%|Nasdaq Comp. 25,881.95 ▼1.5%