Oil Prices Swing Amid Iran Uncertainty, Stocks Near Records
Oil prices continued their volatile ride on Tuesday, influenced by uncertainty surrounding Iran's oil supply after the US and Israel's recent military action. The price of Brent crude briefly surged above $90 per barrel in the morning but later settled at $87.99, up 0.3% from Monday.
The higher oil prices have a direct impact on inflation, with the average cost for a gallon of regular gasoline reaching $4.01, according to AAA. This is an increase of nearly $1 per gallon compared to a year ago, although it has decreased slightly from last week's near-record high of $4.09.
The Federal Reserve is paying close attention to inflation rates, which are expected to show a slight deceleration to 3.4% in July from 3.5% in June. This could influence the Fed's decision on whether to raise interest rates at its next meeting in September, with traders betting on a coin flip's chance of a rate hike.
On Wall Street, major indices remained near their records, with the S&P 500 adding 0.1% and the Dow Jones Industrial Average up 7 points. The Nasdaq composite was nearly unchanged. Companies such as Cardinal Health and Aramark reported stronger-than-expected profits, contributing to a mixed market performance.