Oil Prices Surge as US-Iran Tensions Escalate

International oil prices rebounded sharply in response to the uncertain US-Iran negotiation outlook, pushing Brent crude futures back above $100 per barrel. This development has contributed to rising US Treasury yields, with the 10-year yield breaking above 5%. The dual pressure has led to a decline in all four major US stock indices, with the Philadelphia Semiconductor Index experiencing the steepest drop of over 1.8%.

The Dow Jones Industrial Average fell by as much as 327.92 points to 51,535.77, while the S&P 500 dropped 51.01 points to 7,713.63. The Nasdaq Composite slid 285.67 points to 26,958.61, and the Philadelphia Semiconductor Index tumbled 230.96 points to 12,458.86.

US President Donald Trump stated that he faces a 'momentous decision' regarding an agreement with Iran or 'wiping it out.' However, Iranian officials responded by downplaying the meeting's significance, casting uncertainty over the negotiation prospects. The energy market's reaction was reflected in oil price movements, which stabilized and rebounded as the negotiation outlook turned uncertain.

The impact of high oil prices has already been felt by end consumers, with the national average retail price for diesel reaching a record high of $6.53 per gallon. US Treasury Secretary Scott Bessent revealed that the administration is evaluating whether to impose a full or partial ban on diesel exports, although Energy Secretary Chris Wright appears to oppose this idea.

Somewhat counterintuitively, some Wall Street strategists maintain an optimistic outlook for US equities through year-end. Brett Ewing, chief market strategist at First Franklin Financial Services, predicts that the S&P 500 could reach 8,200 by the end of the year, while David Snyder, chief US equity strategist at Goldman Sachs, projects a similar target.