Crude Prices Soar, Weighing Down US Equities
US equities are expected to continue their downward trend as crude prices reach three-month highs, pushing global bond yields up. The Brent benchmark has surpassed $100, while Goldman Sachs has increased its forecasts for oil prices. A report from analytics firm Vortexa showed that the amount of oil on ships at sea is down by over 150 million barrels since mid-July.
The US military's destruction of five Iranian tankers in response to ballistic missile attacks has further contributed to the increase in crude prices. The incident has led to the imposition of 36 Iran-related sanctions targeting Tehran's aviation sector and other companies.
Meanwhile, semiconductor stocks are lower following a four-day rally. An exchange-traded fund tracking major chipmakers is down by over 1% in US premarket trading.