Public Markets 24 Hours

Last updated: July 13, 2026, 5:30 PM ET

Geopolitical Tensions Fuel Oil Surge and Market Volatility

Crude oil prices a barrel, reaching their highest in a month, as President Trump vowed to impose a 20% fee on vessels transiting the Strait of Hormuz and potentially reinstate a blockade on Iranian ships as tensions flared. Trump claimed the U.S. would act as "guardian" of the waterway, seeking reimbursement for providing security as detailed in a separate statement. This escalation followed tit-for-tat attacks between the U.S. and Iran, leading to a significant drop in ship traffic through the Strait of Hormuz to its lowest point in a month. Dubai is planning a new port on the UAE's east coast to bypass the Strait, a move prompted by the conflict as the region shifts. U.S. stocks fell on Monday as investors grappled with the renewed Middle East tensions and conflicting information regarding the Strait of Hormuz, while European stocks remained steady, with energy gains offsetting weakness in tech. Indian trade deficits have widened, with uncertainty surrounding the U.S.-Iran conflict and shipping through the Strait clouding the outlook for global supply chains as risks mount.

AI Hype Cools, Chip Stocks Tumble Amidst Market Jitters

U.S. stocks experienced sharp as a significant selloff in chip stocks rattled investor confidence in the artificial-intelligence trade. This AI-driven selloff also impacted Asian chipmakers, leading to declines in Wall Street tech stocks as a result. SK Hynix's major U.S. debut was marred by doubts surrounding AI, contributing to the Nasdaq's slump as concerns grew. Apple Inc. saw a rally, however, as traders fled the AI selloff and flocked back to the tech giant, while nervousness about AI spending weighed on chipmakers and cloud-computing firms. The financing for the AI buildout is, requiring hyperscalers to become more creative. Meanwhile, the dollar's recent gains are at risk if the selloff in artificial intelligence stocks deepens, according to Apollo Global Management. The U.S. is also looking to bolster its quantum computing capabilities, with a call for a national buyer to drive demand as the technology evolves.

Corporate Dealmaking and Executive Shifts

Chipotle Mexican Grill is as part of an international push, a move that comes amid slowing domestic sales growth due to high inflation. The CEO of Brown-Forman, the maker of Jack Daniel's, Lawson Whiting, though he will remain in his role until a successor is appointed. In the media sector, a lawsuit filed by California and 11 other states of Warner Bros. Discovery by Paramount, arguing the deal would harm movie theaters and the entertainment industry. This legal challenge could delay the deal and cost the studio tens of millions of dollars. Royal Bank of Canada is business in the U.S. and Europe, anticipating that the multibillion-dollar fundraising for artificial intelligence will fuel demand for hedging products. First Hawaiian Bank has agreed to acquire Tri Co Bancshares in an all-stock transaction valued at $2.01 billion in a significant merger.

Energy Sector Adjustments and Carbon Capture Initiatives

Shell is for $1.8 billion to Aditya Birla Renewables, as the energy major continues to refocus on oil and gas. Canadian oil sands producers have reached an agreement with the Alberta and federal governments on next steps toward building a carbon capture and storage system as part of a climate accord. The United Arab Emirates boosted crude output by 80% in June after quitting OPEC to escape production quotas and bring oil to market as it optimizes production. Russia's crude output has fallen to the lowest in at least two and a half years in June, largely due to Ukrainian attacks on its oil infrastructure as conflict continues, with Russian refinery runs also plunging to their lowest in over two decades due to the ongoing assaults.

Regulatory Scrutiny and Economic Outlooks

Federal Reserve Governor Christopher Waller if inflation remains persistently high, stating he needs to see several months of lower inflation data to feel confident about the economic outlook. He reiterated this stance, suggesting policymakers may need to raise rates in the near term if underlying inflation signals broad price pressures as concerns persist. Wall Street strategists anticipate that a panel assembled by Federal Reserve Chairman Kevin Warsh to review the central bank’s $6.7 trillion balance sheet will face significant challenges. Meanwhile, Europe risks an "explosive" path if it does not address its debts, according to the International Monetary Fund, which is urging the region to get a grip on its public finances.

Labor Dynamics and Societal Shifts

The UAW's bold leader, Shawn Fain, has ushered in a more militant union, but critics are questioning his wielding of power amidst new waves of union infighting. Fain himself has stated he is the victim of "bogus allegations" as a grand jury investigates whether he used his position to seek favors for his fiancée and retaliated against a union official who denied them amidst a probe. In a societal shift, Gen Z is increasingly turning to trade schools to future-proof their careers against AI, but convincing parents and peers remains a challenge as stigma endures. In other labor news, Volkswagen is warning it may need to cut an additional 50,000 jobs as it seeks to reduce costs amid growing competition from China.