U.S. stocks were mixed as Boeing’s revenue beat lifted the Dow, while easing Strait of Hormuz supply fears and Iran-Oman talks pushed oil sharply lower despite continued U.S.-Iran military tensions.
U.S. stocks were mixed as falling oil prices weighed on energy shares while Boeing helped lift the Dow Jones Industrial Average after reporting revenue above estimates. The Dow rose 1.25% to 52,860.91, supported by a roughly 5% gain in Boeing shares, while the S&P 500 added 0.34% to 7,438.49 and the Nasdaq Composite slipped 0.01% to 24,928.70 as a 2.5% decline in information technology stocks offset a 3.6% rise in consumer staples. Crude prices extended a volatile slide as signs of progress in talks between Iran and Oman over management of the Strait of Hormuz eased fears of an immediate supply shock. Brent crude fell as much as 4.8% to near $84 a barrel, dropping back below $90, while West Texas Intermediate fell between 4.1% and 5.4% to around $78-$79 a barrel, partly reversing the previous session’s rally and unwinding some of the geopolitical risk premium built into oil. Reuters-cited reporting from Iran's Labour News Agency said negotiations were advancing, with Iran's Deputy Foreign Minister Saeed Gharibabadi describing a proposed joint management arrangement under which Iran would oversee traffic in one direction through the strait and Oman the opposite lane. The Strait of Hormuz carries nearly 20% of global seaborne oil trade. The market move came even as military tensions persisted. The United States carried out fresh strikes on Iranian targets after attacks on American forces in the Middle East, and Iran's Islamic Revolutionary Guard Corps said it had "full control" of the Strait of Hormuz. Iran has also denied direct ceasefire talks with Washington, saying dialogue has been pursued through Oman. Broader shipping risks remain in focus. Analysts and reports cited continued disruption risks at Bab el-Mandeb in the Red Sea, possible Houthi transit fees or blockade actions affecting Saudi-linked shipping, and a disruption at the Caspian Pipeline Consortium terminal in the Black Sea after a vessel was hit during loading. Barclays said net exports through Hormuz averaged 2.9 million barrels a day in the week ended July 24, down from 5.9 million barrels the previous week, while Goldman Sachs said Brent could fall to around $80 by year-end if Hormuz fully reopens in the fourth quarter. Boeing posted a second-quarter adjusted loss of 76 cents per share, wider than Wall Street estimates for a loss of 30 to 34 cents, but revenue rose 8% year over year to $24.56 billion, above consensus forecasts of roughly $24.05 billion to $24.25 billion. Despite the stock’s rebound, Boeing shares remain down roughly 3% this year and more than 9% over the past 12 months.