Oil Prices Rise Again as Iran War Threatens Markets

Oil prices climbed Monday as fears grew that the war involving Iran could continue longer than investors had hoped, increasing pressure on global energy markets and inflation.

Despite rising oil prices, U.S. stocks continued hovering near record highs as investors remained optimistic about corporate earnings and the broader economy.

Brent crude climbs above $104

The price of Brent crude oil rose nearly 3% to more than $104 per barrel after President Donald Trump said the U.S.-Iran ceasefire was now on “life support.”

Trump rejected Iran’s latest proposal aimed at ending the conflict, increasing uncertainty ahead of his upcoming trip to China.

Analysts say Trump may pressure Chinese President Xi Jinping to use Beijing’s economic leverage over Iran during the summit.

China remains the largest buyer of Iranian oil exports despite international sanctions.

Strait of Hormuz disruption continues hurting markets

The war has severely disrupted shipping through the Strait of Hormuz, one of the world’s most important oil transit routes.

The closure has trapped tankers in the Persian Gulf and pushed oil prices sharply higher since the conflict began earlier this year.

Before the war, Brent crude traded near $70 per barrel.

The surge in energy prices has fueled global inflation and increased costs for transportation, manufacturing, and consumer goods worldwide.

Wall Street still approaches record highs

Even with energy markets under pressure, the U.S. stock market continued rising Monday.

The S&P 500 gained roughly 0.3% and remained close to another record high.

The Nasdaq Composite also climbed and moved closer to an all-time high as technology stocks continued leading the market.

Analysts said investors remain hopeful the energy shock may not become permanent.

AI boom continues driving tech stocks higher

Artificial intelligence companies remained among the strongest performers on Wall Street.

NVIDIA rose about 3%, while Micron Technology surged more than 6%.

The AI sector has continued benefiting from massive spending on data centers and computing infrastructure despite broader economic concerns.

Corporate earnings have also remained stronger than expected.

According to FactSet, more than 80% of S&P 500 companies reporting earnings this quarter have exceeded profit forecasts.

Consumer-focused companies struggle

Some sectors more vulnerable to rising gasoline prices weakened Monday.

Dollar General fell more than 6% as investors worried lower-income consumers could reduce spending because of higher fuel costs.

Travel-related companies also declined because of rising energy expenses.

Carnival Corporation dropped nearly 5%, while Southwest Airlines lost more than 3%.

Fertilizer and shipping costs remain elevated

Mosaic Company also reported weaker-than-expected quarterly results.

The fertilizer company said it continues facing sharply higher raw material and shipping costs because of disruptions tied to the Iran conflict.

Logistics bottlenecks across global shipping routes have increased costs for sulfur and other industrial inputs used in fertilizer production.

Housing market shows signs of slowing

Economic data released Monday showed sales of previously occupied U.S. homes weakened more than expected last month.

Meanwhile, Treasury yields remained elevated compared to pre-war levels.

Higher yields increase borrowing costs for mortgages, business loans, and consumer credit, creating additional pressure on economic growth.

Investors remain focused on war developments

Markets continue reacting heavily to headlines involving the Iran conflict and the future of the Strait of Hormuz.

Analysts say investors are balancing concerns about prolonged inflation against optimism that the U.S. economy and corporate profits remain resilient enough to avoid a major downturn.

For now, Wall Street appears willing to tolerate higher oil prices as long as broader economic activity continues holding steady.