This content was published on
July 13, 2026 - 19:35
4 minutes
(Bloomberg) — A standoff between the US and Iran lifted oil prices, dragging down stocks and bonds after clashes over the Strait of Hormuz raised concerns about a disruption in energy supplies that could fuel inflation.Those worries halted back-to-back gains in the S&P 500, which also fell amid a chipmaker rout. Brent crude hit $80 after President Donald Trump said the US would restart a blockade on Iranian ships transiting Hormuz and charge all other cargo moving through the waterway. Money markets priced in about 50% odds of a Federal Reserve hike in July as Governor Christopher Waller said officials may need to raise rates to tame price pressures.The US and Iran exchanged fresh strikes overnight into Monday, intensifying an ongoing standoff over the status of the shipping passage at the center of the two nations’ revived conflict. Transits through Hormuz sunk to their lowest level in a month on Sunday, according to ship tracking data compiled by Bloomberg.“A weekend of hostilities between the US and Iran is triggering a risk-off day on Wall Street,” said Jose Torres at Interactive Brokers. “The renewed attacks are generating growing worries about the feasibility of a longer-term truce in which both nations commit to peace.”Until something changes with the status of Hormuz, Paul Christopher at Wells Fargo Investment Institute says he believes the bias remains for higher oil prices, expected inflation and interest rates as well as episodes of equity volatility.The flare-up in geopolitical tension comes at a time when Wall Street investors are getting ready for the start of the earnings season, with markets growing uneasy over whether the enormous sums being poured into artificial intelligence will pay off.“The ongoing swings in semiconductors has made it difficult for tech to mount a sustained push to the upside, and while the market has so far taken the breakdown of the US-Iran ceasefire in stride, escalating hostilities and rising oil prices won’t help the bullish cause,” said Chris Larkin at E*Trade from Morgan Stanley.Headline inflation numbers are expected to cool this week, but the market may not get as much of a boost from good news if traders think oil is headed higher again, he noted.The recent drop in gasoline prices likely helped drag down the consumer price index. The gauge due Tuesday is expected to show its first monthly decline since the onset of the pandemic in 2020. Still, Wednesday’s producer price index could underscore upstream pressures continuing to build.During both days, Kevin Warsh will make his first appearances before Congress as Fed chairman. Several other officials are also slated to speak this week.Corporate Highlights:An AI-fueled stock rout in South Korea spilled over into the US market Monday, as SK Hynix Inc. American depositary shares tumbled, underscoring growing investor concerns that the boom is overextended. Meta Platforms Inc. has committed to spending an additional $40 billion on its sprawling data center campus in Louisiana, pushing its total expected investment beyond $250 billion for the site as it continues to grow its artificial-intelligence computing footprint. Intel Corp. is spending €5 billion ($5.7 billion) to expand its plant in Ireland, as the chipmaker attempts to regain its manufacturing dominance for the AI boom. Taiwan Semiconductor Manufacturing Co. reported a 36% jump in quarterly sales, meeting elevated expectations while signaling global demand for AI computing remains intact. Walt Disney Co. shares have been in a slump for years, but Wells Fargo Securities said there’s one possible move that could reverse the trend: ditching its streaming-video business. Some of the main moves in markets:StocksThe S&P 500 fell 0.7% as of 1:34 p.m. New York time The Nasdaq 100 fell 1.7% The Dow Jones Industrial Average fell 0.3% The MSCI World Index fell 0.6% CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.3% to $1.1387 The British pound fell 0.3% to $1.3361 The Japanese yen fell 0.5% to 162.46 per dollar CryptocurrenciesBitcoin fell 3.2% to $62,119.69 Ether fell 2.8% to $1,770.37 BondsThe yield on 10-year Treasuries advanced five basis points to 4.61% Germany’s 10-year yield advanced four basis points to 3.11% Britain’s 10-year yield advanced 10 basis points to 4.97% CommoditiesWest Texas Intermediate crude rose 6.7% to $76.18 a barrel Spot gold fell 2.9% to $4,000 an ounce ©2026 Bloomberg L.P.
