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Oil extends gains and stocks fall as Trump issues fresh Iran warning
🇸🇬 Singapore /Economy & Trade

Oil extends gains and stocks fall as Trump issues fresh Iran warning

From CNA · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Ongoing story
  • Oil prices rose for a second day as investors assessed the risk of renewed US-Iran hostilities after strikes and retaliatory attacks over the weekend.
  • Stocks mostly declined, while concerns about inflation and higher interest rates pushed the 10-year US Treasury yield to its highest level since January 2025.
  • The Strait of Hormuz remained closed, and markets awaited US jobs and inflation data before the Federal Reserve’s Sept. 16 policy meeting.

Oil prices climbed again on Tuesday as markets absorbed a new exchange of fire between the United States and Iran, along with Donald Trump’s warning that Washington would respond forcefully.

We’re going to hit them hard.

— Donald TrumpTrump warned of a US response after strikes between the United States and Iran.

The latest strikes followed six months of war that has reached an impasse. Tehran has kept the strategic Strait of Hormuz closed, while Washington has maintained a counter-blockade of Iranian ports. The United States struck rocket launchers on Iran’s Larak island on Sunday, saying it wanted to prevent Tehran from planting mines in the strait. Iran retaliated against US military targets in Jordan and the United Arab Emirates.

The fighting ended weeks of relative calm and revived fears that a wider conflict could disrupt energy markets and increase inflationary pressure. Both major crude contracts rose after jumping more than 2% on Monday. National Australia Bank’s Rodrigo Catril said the initial actions appeared calibrated, but stalled talks and the importance of the strait left the situation vulnerable to escalation.

There will be a response.

— Donald TrumpTrump said the United States would respond to Iran’s retaliatory attacks.

“We’re going to hit them hard,” Trump said, according to a Fox News reporter who spoke with him briefly. “There will be a response.” US Treasury Secretary Scott Bessent said Washington would continue its pressure campaign and suggested that a turning point could come “within weeks or months.”

We are going to continue exerting pressure, and we’ve had very good discussions here already.

— Scott BessentThe US Treasury secretary described the administration’s ongoing pressure campaign against Iran.

Asian stocks mostly fell, with markets also focused on upcoming jobs and consumer-price data. Those figures could influence expectations for the Federal Reserve’s Sept. 16 meeting, where bets on a rate increase have risen after a hawkish speech by Fed Chair Kevin Warsh. Higher inflation and borrowing-cost expectations pushed the 10-year US Treasury yield to its highest level since January 2025, while 10-year Japanese government bond yields reached a 30-year high on Monday. Shein shares also fell more than 9% in the company’s long-awaited Hong Kong trading debut.

The calibrated nature of the initial actions suggests neither side is actively seeking a return to sustained conflict, but stalled talks and the strategic importance of keeping the Strait open leave the situation vulnerable to further escalation.

— Rodrigo CatrilThe National Australia Bank analyst assessed the market risks from the US-Iran exchange of fire.
About this summary

Originally published by CNA in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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