US Stocks Tumble as Middle East Conflict Fears Drive Energy Prices Higher
US stocks closed lower on August 10 as investors became less confident about a resolution to reopen the Strait of Hormuz, pushing energy prices up by nearly 5%.
The concerns over energy supply pushed US crude oil prices up, with Brent Crude trading at $87.94, a 0.25% increase, and Crude Oil rising to $82.35.
Gold increased 0.87% to reach $4,429.51, while the diplomatic tensions between the US and Iran remained high, with President Donald Trump demanding compensation from Iran for deaths caused in wars, attacks, and protests.
The market retreat came despite solid corporate earnings, with about 85% of the 436 S&P 500 companies reporting results so far beating estimates. Tom Hainlin, an investment strategist at US Bank Wealth Management, noted that 'the direct impact is just the energy sector and ... oil prices, and they're just sticky here above where they were on February 27 before the conflict.'