US airstrikes on Iran push oil prices up 2.6%, global stocks slide
Brent crude rose 2.6% to $76.09 a barrel after US forces bombed targets in Iran overnight, reimposing sanctions on Iranian oil exports. Global equity markets fell, with tech and semiconductor shares hit hardest.
Oil prices climb after US strikes
Brent crude for August delivery rose 2.6% to $76.09 a barrel in early Wednesday trading, extending a 3% gain from Tuesday. The increase followed overnight US airstrikes on Iranian targets and the reimposition of sanctions on Iranian oil exports. Earlier this month, Brent had fallen to $70, its lowest since the Iran war began in late February. At least four oil and gas tankers turned back from the Strait of Hormuz after attacks on vessels there, ship tracking data showed.
Iran will take decisive measures to protect its national interests and security.
- Brent crude falls to $70, lowest since Iran war began
- Tanker attacks in Strait of Hormuz; Brent rises 3%
- US airstrikes on Iran, sanctions reimposed; Brent up 2.6% to $76.09
Equity markets under pressure
Germany's DAX index was called 0.3% lower after sliding 1.4% to 25,465 points on Tuesday. On Wall Street, the Nasdaq fell 1.2%, the S&P 500 lost 0.5%, and the Dow slipped 0.3% from an intraday record. The Philadelphia Semiconductor index tumbled 4.7%, dragged down by Samsung Electronics' quarterly results. In Asia, Japan's Nikkei dipped 0.7% while South Korea's Kospi sank more than 4%, reflecting its heavy tech weighting.
The fear of an abrupt end to the rally in everything AI-related, which until now knew only one direction on the trading floor, is clearly palpable.
- DAX
- -1.4 %
- Nasdaq
- -1.2 %
- S&P 500
- -0.5 %
- Dow
- -0.3 %
- Nikkei
- -0.7 %
- Kospi
- -4 %
- Philadelphia Semi
- -4.7 %
Fragile ceasefire tested
The US military said the strikes were a response to attacks on three tankers in the Strait of Hormuz. Washington also reinstated sanctions on Iranian oil, and Tehran retaliated by revoking an oil license. Iran called the US actions a "serious violation" of the framework agreement that had paused the conflict. The incidents threaten the already fragile ceasefire.
Reserves and sentiment
Despite the escalation, strategists noted that markets were not in outright panic. US strategic oil reserves have fallen to their lowest level since 1983, data this week showed, heightening vulnerability to supply disruptions. Investors are also awaiting Federal Reserve minutes later Wednesday for clues on interest rates.
Obviously the market doesn't like these attacks, but it's not outright panic.
