Stock Rally Wavers on Hormuz Deadlock as Oil Rises: Markets Wrap
(Bloomberg) — A rally that drove stocks to all-time highs wavered as oil climbed after the US and Iran failed to agree on terms to end their war, dashing hopes for an imminent revival of the Strait of Hormuz.
Following its sixth straight weekly advance, the S&P 500 fluctuated. US crude rose to around $96, with the near-halt of traffic through the key energy chokepoint reigniting concerns about more energy disruptions and a spike in inflation. The bond market, which has priced out the odds of Federal Reserve rate cuts this year, saw a renewed increase in Treasury yields.
The US and Iran remain far apart on a framework to resolve their conflict, with President Donald Trump calling the Islamic Republic’s reply to his proposed peace plan unworkable. Tehran demanded a lifting of the US naval blockade and sanctions relief, while maintaining a degree of control over traffic through Hormuz, according to a person familiar with the matter.
The oil market is in “a race against time” as the factors that combined to restrain price rises from the Iran war stand to come under strain if the Strait of Hormuz stays closed into June, according to Morgan Stanley.
“An agreement remains elusive and risks remain elevated,” said Mark Haefele at UBS Chief Investment Office. “Both sides remain under pressure to conclude a deal.”
Global oil markets are losing 100 million barrels every week the strait is shut, compounding a supply shortage that has already made the Middle East war the most significant supply disruption ever, according to the head of Saudi Arabia’s state oil producer.
Iran’s Ghadir submarines are functioning as “invisible guardian” of the strait, semi-official Tasnim news agency reported. A tanker loaded with liquefied natural gas from Qatar appeared to have turned back from the waterway after initially approaching it, reflecting continued uncertainty over regional energy flows.
The conflict with Iran will be on Trump’s agenda when he meets Chinese President Xi Jinping later this week. Revenue that China provides to Iran as well as potential weapons exports would be among the topics discussed at the summit, according to a US official who briefed reporters on a conference call over the weekend.
On the economic front, a fresh batch of data this week is likely to affirm Americans’ growing frustration with inflation. Economists see a sharp 0.6% increase in the consumer price index for April, based on the Bloomberg survey median estimate. That’s on the heels of March’s biggest monthly advance since 2022.
The Bureau of Labor Statistics’ report is due Tuesday.
Corporate Highlights:
Cerebras Systems Inc. increased the size of its initial public offering, now seeking to raise as much as $4.8 billion, as demand for the artificial intelligence chipmaker and data center operator’s shares continues to build. KKR & Co. is injecting $300 million into a private credit fund it manages with Future Standard as performance continues to deteriorate. Barrick Mining Corp. said it will repurchase as much as $3 billion of its shares as the world’s third-largest gold producer woos investors before spinning off its North American assets later this year. Circle Internet Group Inc.’s first-quarter revenue increased 20% while net income declined, as ongoing volatility in cryptocurrency markets roiled earnings from companies across the industry at the start of the year. SoftBank Group Corp. founder Masayoshi Son has held talks about unveiling an ambitious French AI data center project with President Emmanuel Macron in the coming weeks, according to people familiar with the matter. Some of the main moves in markets:
Stocks
The S&P 500 rose 0.1% as of 10 a.m. New York time The Nasdaq 100 was little changed The Dow Jones Industrial Average rose 0.1% The Stoxx Europe 600 was little changed The MSCI World Index rose 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1785 The British pound was little changed at $1.3624 The Japanese yen fell 0.2% to 157.03 per dollar Cryptocurrencies
Bitcoin rose 0.4% to $81,001.6 Ether fell 0.3% to $2,320.95 Bonds
The yield on 10-year Treasuries advanced three basis points to 4.38% Germany’s 10-year yield advanced two basis points to 3.03% Britain’s 10-year yield advanced eight basis points to 4.99% Commodities
West Texas Intermediate crude rose 0.9% to $96.29 a barrel Spot gold rose 0.5% to $4,741 an ounce ©2026 Bloomberg L.P.
