Oil prices are rising – Brent crude oil futures rose by almost 3% on Monday. up to $104 a barrel after Donald Trump declared that the current ceasefire between the US and Iran was close to collapse. The United States rejected Iran's counter-peace offer, which reduced the likelihood of an early end to the conflict. In turn, the US stock exchanges do not seem to care about the news from the Middle East – another record was broken on Wall Street by the S&P 500 index.
American WTI crude oil is also becoming more expensive – futures contracts are up 3%. up to $98 per barrel. After several days of declines last week, when investors were hoping for progress in negotiations between the US and Iran, the commodity returned to growth.
WTI and Brent crude oil prices increased by over 40%. since the US and Israel attacked Iran on February 28.
In turn, on Wall Street, the session ended with slight increases, and the S&P 500 index closed the day above 7,400 points for the first time in history.
The S&P 500 increased by 0.19%. and amounted to 7,412.84 points. The Nasdaq Composite rose 0.10 percent and the Dow Jones Industrial rose 0.19 percent.
The tech boom is simply too strong to let high energy prices impact the U.S. economy or the U.S. stock market,” Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, told CNBC. “Everyone is ignoring the Middle East.”
He estimates that the impact of the war with Iran will be offset in the coming months by an “unprecedented” technological boom.
These moves come after the S&P 500 and Nasdaq indexes rose more than 2%, respectively. and 4 percent last week. Both indexes posted a sixth straight week of gains — the first time since 2024 — and ended Friday's session at all-time highs.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu warned that the conflict with Iran “is not over,” raising fears that tensions in the Middle East could rise again and further threaten energy supplies.
Saudi Aramco CEO Amin Nasser warned the market was losing about 100 million barrels a week. He said that if disruptions in the Strait of Hormuz persist beyond mid-June, the oil market will not return to normal before 2027.
