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Oil Rally and Gulf Strikes Drive Fourth Straight Weekly Loss for U.S. Stocks

Soaring fuel prices refocused markets on inflation risk.

Overview

  • Brent crude settled near $112 and WTI near $98–$99 after fresh hits to Gulf energy infrastructure, including QatarEnergy’s confirmation of significant damage at Ras Laffan and a fire at Kuwait’s Mina Al-Ahmadi refinery.
  • U.S. equities fell for a fourth consecutive week, with the S&P 500 down 1.5% Friday and both the Nasdaq and Dow nearing correction territory as major indexes slipped below their 200-day moving averages.
  • Treasury yields rose, with the 10-year around 4.38%, as officials cautioned that persistent oil strength could keep inflation elevated and reduce the case for rate cuts.
  • The Strait of Hormuz remained largely shut, Iraq declared force majeure on foreign-operated oilfields, and an Axios report said the U.S. is considering action at Iran’s Kharg Island, underscoring supply-risk uncertainty.
  • Market moves were highly dispersed: FedEx jumped after a strong quarter and higher guidance, while Super Micro Computer tumbled after the DOJ unsealed an export-evasion indictment naming its co-founder.