Hormuz Crisis Weighs on Wall Street as Energy Prices Soar
Investors' confidence in resolving the Strait of Hormuz crisis waned on August 10, leading to a decline in US stocks. According to Reuters, energy supply concerns pushed up US crude oil prices by about 5 per cent.
The reopening of the Strait could alleviate concerns over energy prices, which have raised worries about inflation and potential central bank rate hikes. At the time of reporting, Brent Crude traded at USD 87.94, up 0.25 per cent, while Crude Oil rose to USD 82.35.
Gold increased 0.87 per cent to reach USD 4,429.51. Diplomatic tensions remained high as US President Donald Trump demanded compensation from Iran for deaths caused in wars, attacks, and protests.
The losses in semiconductor stocks weighed heavily on the broader market. Shares of Intel fell 4.1 per cent following its announcement to raise USD 15 billion through a share sale, while Nvidia dropped 2.9 per cent.