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Last updated: July 14, 2026, 8:30 PM ET

Geopolitical Tensions Fuel Oil Rally and Market Volatility

Oil futures in the Strait of Hormuz due to Iran's attacks on shipping, pushing U.S. crude prices toward $80 a barrel as markets reacted. The conflict has created a "record tightness" in fuel markets across the U.S. and Europe, threatening further price surges for consumers as hostilities intensified. Brent crude edged higher following U.S. strikes in response to Iranian actions, though oil settled off its highs after President Trump withdrew a proposed 20% fee on ships transiting the Strait of Hormuz as the plan was revised. Asian oil buyers are increasingly turning to U.S. crude as the conflict, while India's refiners are reaping a windfall from fuel exports amid global shortages. Palm oil also advanced as the crude rally boosted biofuel prospects.

Inflation Cools, Banks Post Record Earnings Amid Economic Crosscurrents

U.S. Treasury yields fell and the dollar weakened as inflation fears eased following a milder-than-expected U.S. Consumer Price Index report for June. The CPI showed a 3.5% annual increase, with prices marking their largest monthly drop since 2020 as inflation cooled. This cooling inflation, coupled with robust bank earnings. Wall Street banks, including JPMorgan, Goldman Sachs, and Bank of America, benefiting from an AI-driven stock trading boom and a surge in tech and financial services activity. However, despite strong quarterly results and a stable U.S. economy, "tectonic" risks loom, reflecting geopolitical uncertainty. High credit card delinquency rates are not yet significantly impacting large banks, contrasting with broader market indicators showing the highest delinquency rates in 15 years.

Tech Sector Faces Scrutiny as AI Dominance and Market Shifts Emerge

International Business Machines Corp. (IBM) suffered its worst day on record as its stock plunged 25% after preliminary results missed analyst expectations, with customers shifting spending towards artificial intelligence. This miss delivered a "devastating blow" to software and IT services companies and reigniting questions about the sector's valuation. While AI data-center construction is booming, spending on other industrial sites has been dampened by rising costs. In the semiconductor space, Nvidia has amid China's chip crackdown, reflecting U.S. efforts to close export-control loopholes. The trillion-dollar chip rout is focusing attention on upcoming results from Taiwan Semiconductor Manufacturing Co. and ASML Holding NV. Additionally, Chinese memory giant CXMT Corp. unveiled terms for its $9.8 billion Shanghai IPO.

Other Market and Economic Developments

Gold settled higher by 1.6%, with silver rising nearly 2%, snapping a two-session losing streak amid broader market movements. The WSJ Dollar Index fell 0.4%, marking its third decline in four trading days. In the auto sector, Saudi-owned carmaker Lucid has as EV sales slump. Emerging market assets rallied as cooler U.S. inflation data pared bets on imminent Federal Reserve interest-rate hikes, boosting demand for riskier assets. Honduras is and tap global markets for new debt. Meanwhile, U.S. small business confidence, with the NFIB small-business optimism index rising to 97.4.