Public Markets 3 Hours

Last updated: July 23, 2026, 5:30 AM ET

Energy Prices Surge Amid Middle East Tensions

Oil futures climbed to over $98 a barrel as escalating conflict in the Gulf intensified, with Houthi rebels claiming to have attacked two ships in the Red Sea and Iran reporting a vessel caught fire near the Strait of Hormuz. The attacks, which targeted two Saudi Arabian tankers, Encelia and Layla. Global energy supplies face a stranglehold as chokepoints like Hormuz, Bab al-Mandeb, and the Black Sea, collectively imperiling about a quarter of the world's oil, are threatened. Despite the tensions, two China-owned oil tankers remained on course to exit the Red Sea.

Corporate Dealmaking and Financial Performance

Nestle agreed to sell half of its water unit to Platinum Equity for $3.4 billion, a move that comes as the company navigates significant restructuring costs. In the aerospace sector, Dassault Aviation shares following strong first-half sales and earnings, despite lower order bookings. Eni, through its Enilive subsidiary, announced a deal to acquire a European fuel service station business from Prax for an undisclosed sum. Meanwhile, TotalEnergies from elevated oil and gas prices to cut its net debt by $3.3 billion, bringing it to just under $20 billion. Repsol also as its earnings surged due to higher crude prices, noting its lack of Middle East assets has kept production unaffected.

Market Reactions and Economic Outlook

European stock indexes, with consumer stocks giving back recent gains, as tech struggles persisted. Shares of STMicroelectronics despite raising its AI data-center revenue target, while Moncler shares due to weaker European tourism impacting sales. German bond yields as surging energy prices and inflation expectations fueled bets on interest-rate hikes ahead of the European Central Bank's decision. Gold prices as investors awaited the Federal Reserve meeting, with escalating Middle East tensions driving oil higher and raising inflation concerns. The euro, however, eased against a basket of currencies with no fresh catalysts to strengthen the dollar.

Sector-Specific and Regional Developments

Luxembourg is stepping up its retail bond offerings, following a successful sale of defense bonds with new securities aimed at funding affordable housing. In the Philippines, President Ferdinand Marcos Jr. is confident the central bank on the weakening peso, which has hit record lows. Nigeria's biggest lender, First Hold Co Plc this year after a recapitalization bolstered its balance sheet. Easy Jet reported that its quarterly earnings, with profits dragged down by higher fuel prices and reduced consumer demand linked to the Middle East conflict. Macquarie has appointed Greg Ward to as CEO. China's XPeng is charting a course from electric vehicles to robotics, according to its CEO. Nokia continues to from AI and data-center customers.