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July 16, 2026 - 01:28
5 minutes
(Bloomberg) — Crude oil extended gains as the US launched fresh strikes on Iran, raising concerns that Middle East tensions will further disrupt energy supplies. Stocks in Asia are set to open mixed.West Texas Intermediate traded above $80 a barrel after adding more than 11% in the previous three sessions, as the US continued its attacks on Iran in a bid to secure shipping through the Strait of Hormuz. Gasoil prices, however, were a touch weaker in the previous session.Equity-index futures pointed to declines in Japan and South Korea, while those for Hong Kong and Australia indicated gains. Earlier, the tech-heavy Nasdaq 100 fell 0.3%, while a US semiconductor gauge pared some of its losses to finish down more than 2%.Treasuries gained during the US session after producer price inflation was slower than expected in June. That prompted traders to further dial back wagers on Federal Reserve interest-rate increases this year, pricing in about three basis points worth of tightening this month — a roughly 10% likelihood of a quarter-point move. The dollar fell for a second day.While inflation reports this week eased concerns over near-term Fed hikes, the escalating conflict in the Persian Gulf has revived concerns over energy supplies from the region. Investors are also assessing whether strong earnings can sustain the artificial intelligence rally after sharp swings in semiconductor stocks exposed lingering concerns over the sector’s lofty valuations.“There’s no near-term pressure on the Fed, but oil is in the driver’s seat over the longer term,” said David Russell at TradeStation. “Energy saved the day in June, but that might become ancient history if the Strait of Hormuz doesn’t open soon.”A US-Iran interim peace deal signed around a month ago has all but collapsed over the past week as the two sides feud over control of the vital strait, through which Saudi Arabia, Qatar, the United Arab Emirates and others send most of their energy exports.The latest attacks come as US President Donald Trump pledged to intensify the bombardment until Tehran stops attacking ships in the Strait of Hormuz and agrees to open the waterway.Meanwhile, the chip sector remained in focus after a volatile month. SK Hynix Inc.’s American depositary receipts fell 9% on Wednesday, while Taiwan Semiconductor Manufacturing Co. is due to report earnings later Thursday.What Bloomberg Strategists say…“Semis staged a constructive recovery after another bruising start, but the SOX still ended lower by roughly 2%. Whether that bounce has any durability remains an open question heading into Asia, where chips will again be under the microscope after several sessions of volatile price action. The sector stabilized today, but conviction remains elusive.”—Brendan Fagan, Macro Strategist, Markets Live. For the full analysis, click here.Elsewhere, data from the Fed showed US economic activity increased at a slight to moderate pace in recent weeks as most regions experienced little to no change in employment levels. Prices rose moderately overall, according to the Beige Book survey of regional business contacts.“Some contacts tied these cost increases to the conflict in the Middle East; others mentioned tariffs. Consumer prices continued to rise, and a few districts said contacts saw greater price sensitivity among their customers,” the Fed noted.Corporate Highlights:Anthropic PBC is seeking to meet with investors ahead of its potential mega-IPO, according to people familiar with the matter. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said the risks raised by Anthropic’s Mythos AI model are a “real issue” that the US government is on top of now. Apple Inc. received long-awaited government approval to roll out Apple Intelligence in China, potentially giving it a boost in the world’s most-competitive smartphone market. Morgan Stanley’s stock traders sailed past Wall Street’s expectations to set another quarterly record, adding to the industry’s second-quarter windfall from buoyant markets and ongoing volatility. Larry Fink’s plan to combine BlackRock Inc.’s significant index fund business with higher-fee active and private markets investments is bearing fruit, with revenue jumping and the firm’s assets hitting a record $15.3 trillion. PayPal Holdings Inc. has been working with advisers to review strategic options, people familiar with the matter said, as Stripe Inc. and private equity firm Advent pursue a $50 billion-plus takeover of the fintech pioneer. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:17 a.m. Tokyo time Hang Seng futures rose 0.7% S&P/ASX 200 futures rose 0.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1469 The Japanese yen was little changed at 162.08 per dollar The offshore yuan was little changed at 6.7672 per dollar CryptocurrenciesBitcoin fell 0.1% to $64,863.8 Ether was little changed at $1,923.91 CommoditiesWest Texas Intermediate crude rose 0.8% to $80.25 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
