Oil Price Spike Weighs on US Stocks Amid Middle East Tensions

US stocks closed lower on August 6 as rising oil prices and weakness in semiconductor shares weighed on investor sentiment. The Dow Jones Industrial Average fell 0.85% to 53,885.10, while the S&P 500 dropped 0.18% to 7,709.95.

Renewed tensions in the Middle East contributed to the decline, with reports indicating that Iran's parliament is reviewing legislation to restrict US and Israeli vessel passage through the Strait of Hormuz. This development sent oil prices soaring: West Texas Intermediate crude futures rose 2.8% to settle at $77.29 a barrel, while Brent crude futures gained 3.8% to $82.48 a barrel.

Despite reports that Iran and Oman are close to a temporary agreement to resume vessel traffic through the Strait of Hormuz, uncertainty surrounding the deal's details and potential transit fees kept investors on edge.