Business & Finance
US Stocks Dip as Oil Prices Rise Amid Iran Conflict Concerns
By Adam Hancock
US financial markets fell on Wednesday after a brief rise in oil prices triggered by renewed worries about Middle East supply disruptions. The Dow Jones Industrial Average, S&P 500 and Nasdaq all closed lower following record highs the day before, while Treasury yields climbed to 24‑year highs as investors weighed the impact of high oil prices on inflation and interest rates.
Brent crude futures rose to $101.53 a barrel at 01:16 GMT, and U.S. West Texas Intermediate (WTI) crude futures climbed to $89.39 a barrel. The price increase followed reports of increased attacks on shipping in the Gulf and the Strait of Hormuz, and a warning from the International Energy Agency (IEA) that member countries were ready to release additional oil from their reserves if necessary.
The IEA said it would prioritise diesel due to tight supplies of the fuel. G7 countries, in coordination with the IEA, had agreed last Friday to immediately release 100 million barrels of diesel and crude oil to ease global energy supply concerns caused by fallout from the United States‑Iran war. The IEA’s announcement helped calm oil markets after prices had climbed on Wednesday.
The U.S. Maritime Trade Operations agency reported nine attacks on tankers in the Strait of Hormuz this month, representing half of the September total in the waterway and the Gulf combined. U.S. Secretary of State Marco Rubio reiterated Washington’s claim that it was in control of the strait and that oil flows were close to normal levels.
Despite the surge in attacks, Gulf oil exports have recovered significantly in recent days. According to maritime intelligence firm Kpler, oil flows from the Gulf, excluding Iran, recovered to more than 81 percent of pre‑war levels in September, while crude exports from the wider Middle East exceeded pre‑war levels on 14 days during the month.
The recovery comes amid higher freight, insurance and security costs for shipping companies. On Tuesday, 12 crew members on a Panama‑flagged tanker were injured in an attack by an unknown projectile while crossing the Strait of Hormuz, according to India’s Ministry of External Affairs.