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Oil above $95 pressures US stocks ahead of Big Tech earnings
Brent crude climbed about 3% to its highest level in six weeks as Red Sea shipping disruptions renewed fears of supply constraints.
Oil prices moved above $95 per barrel on Wednesday as Middle East tensions intensified, weighing on US equities ahead of key Big Tech earnings, according to Reuters via Yahoo Finance. Brent crude was last up around 3%, reaching the highest level in six weeks on concerns about potential supply disruptions.
The latest pressure followed reports that four oil tankers carrying Saudi crude to Asia reversed course in the Red Sea after threats of attack from Yemen's Iran-aligned Houthis, Reuters said. The development also tempered hopes that easing tensions could be imminent.
On Wall Street, the Dow Jones Industrial Average was little changed, the S&P 500 fell 0.1%, and the Nasdaq Composite dropped about 0.4%. Carmignac investment committee member Kevin Thozet said the move in oil prices, tied to renewed disruption risks, is driving markets more than other factors.
The broader outlook also faces macro and policy uncertainty, with World Bank chief economist Indermit Gill telling Reuters that escalating hostilities could reignite inflation, push interest rates higher, and slow global growth, potentially to as low as 1.3% from 2.9% last year. Reuters also cited fresh tariff threats by US President Donald Trump, including a plan for 0% tariffs on generic drugs for two years starting August 1, followed by higher rates, and noted market focus turning to earnings after Wednesday's close from Alphabet and Tesla.
Latest closeWTI crude $87.52 ▲3.1%|Brent $94.43 ▲3.8%|S&P 500 7,509.20 ▲0.9%