Brent nears $89 as Hormuz impasse lifts oil and weighs on Wall Street

Wall Street fell again and oil jumped after Washington and Tehran traded fresh compensation demands that dimmed prospects for a near-term reopening of the Strait of Hormuz. The Dow Jones Industrial Average closed down 184.13 points at 53,791.85, the S&P 500 slipped 4.53 points to 7,753.11 and the Nasdaq Composite lost 159.91 points to 26,445.45, while Brent settled up 5% at $87.72 a barrel and West Texas Intermediate gained 5.1% to $82.13 before both extended gains in early Tuesday trading. Iranian officials said the waterway would stay closed unless the United States met demands including compensation for war damage, sanctions relief, the release of frozen assets and an end to military threats, while President Donald Trump said any future negotiations must also include compensation for Americans and others killed in attacks he blames on Tehran. The standoff, together with refinery disruptions in Saudi Arabia, Libya and Russia, tightened energy markets, drove European diesel futures up more than 10% and pushed U.S. Treasury yields to their highest levels of the year as traders reassessed the risk of stronger inflation and a possible Federal Reserve rate hike in September. Earlier reporting in this topic cited higher August 11 oil settlements and steeper losses in the Nasdaq and S&P 500; the latest market update instead put Brent at $87.72, WTI at $82.13, the Nasdaq at 26,445.45 and the S&P 500 at 7,753.11.

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