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Oil extends gains as Hormuz uncertainty keeps inflation fears in focus
S&P 500 futures were up 0.1% as investors watched Wednesday’s US CPI report for clues on the Federal Reserve’s rate path.
US stock futures were largely flat on Tuesday, Aug. 11, as uncertainty around a potential peace deal in the Middle East weighed on risk appetite, while higher oil prices rekindled inflation concerns, LiveMint Markets reported. S&P 500 futures rose 0.1%, Nasdaq-100 futures gained 0.3%, and Dow Jones Industrial Average futures added 34 points, or 0.1%.
Brent crude crossed $90 a barrel after surging 5% in the prior session, extending a winning streak to a fifth straight day, as uncertainty over the Strait of Hormuz continued to pressure sentiment. The outlet said President Donald Trump issued sweeping new demands on Iran, including compensation for people killed in conflicts, after Tehran reiterated its calls for reparations as part of negotiations.
According to LiveMint Markets, Iran has refused to back down on conditions that include the US ending its blockade of Iranian ports before Tehran would consider reopening the Strait of Hormuz. The report also noted Trump’s claim of US “100% control” of the strait and that the US Navy’s blockade is intended to prevent Iran from selling oil internationally, adding to pressure on the Iranian economy.
With oil prices rising again, investors turned to Wednesday’s US consumer price index report, which could affect expectations for the Federal Reserve’s policy outlook. LiveMint Markets cited a Bloomberg survey median expectation that CPI rose 0.1% in July after a 0.4% decline in June.
Latest closeWTI crude $82.30 ▲5.3%|Brent $87.85 ▲5.2%|S&P 500 7,753.11 ▼0.1%