September S&P 500 E-Mini futures (ESU26) are down -0.50%, and September Nasdaq 100 E-Mini futures (NQU26) are down -0.98% this morning as rising oil prices drove bond yields higher, sapping investors’ risk appetite.
The price of WTI crude rose over +2% on Tuesday, extending yesterday’s advance as fresh hostilities between the U.S. and Iran heightened concerns about prolonged disruptions to energy flows through the Strait of Hormuz. U.S. forces struck two Iranian rocket launchers on Sunday, while Tehran responded with a barrage of missiles and drones against U.S. air bases in Jordan. The latest exchange of strikes prompted President Trump to say the U.S. would “hit them hard.” Meanwhile, two oil supertankers attempting to leave the Strait of Hormuz were hit by projectiles in rapid succession late Monday, according to maritime security consultants Marisks.
