U.S. stocks fell for a third straight session while Brent pushed above $90 after an 11th night of U.S. strikes on Iran sharpened worries over Strait of Hormuz, Red Sea and Black Sea disruptions.
U.S. stocks ended lower on July 21 for a third straight session as the U.S.-Iran conflict, higher oil prices, a firmer dollar and elevated Treasury yields weighed on sentiment, while traders monitored risks to global energy shipping. The Dow fell 307.16 points, or 0.59%, to 51,839.26; the S&P 500 lost 14.41 points, or 0.19%, to 7,443.28; and the Nasdaq slipped 12.17 points, or 0.05%, to 25,508.07. Brent crude, which had already moved above $90, was later reported at $94.23 shortly after 4 a.m. ET on Wednesday, while front-month WTI traded at $87.46, after U.S. forces carried out an 11th straight night of strikes on Iran. U.S. Secretary of State Marco Rubio said at the ASEAN Foreign Ministers' meeting in the Philippines that diplomacy remained possible but the Strait of Hormuz remained a sticking point, and Centcom said the latest strikes targeted Iranian military and maritime assets to reduce threats to commercial shipping. Markets also tracked Houthi threats to Saudi shipments through the Bab el-Mandeb Strait, Red Sea disruption, attacks affecting Russia's CPC terminal on the Black Sea, and stronger odds of tighter Federal Reserve policy, with CME FedWatch showing a 24.1% chance of a July hike and a 69% chance of at least a quarter-point increase in September.