Oil spikes while stocks slip ahead of US Fed rate decision Oil prices jumped as fears grew that the Strait of Hormuz could stay blocked. LONDON: Oil prices shot higher Wednesday (Apr 29) on concerns of an extended blockade of the Strait of Hormuz, while Wall Street stocks mostly slid as investors awaited a US Fed rate decision and a slew of tech firm earnings. Both main oil contracts jumped nearly six per cent after US President Donald Trump warned Tehran on Wednesday that it should "get smart soon" and capitulate to Washington's demands for tight controls on its nuclear programme, as a US naval blockade turned the screws on Iran's economy. Meanwhile, the United States could extend its naval blockade of Iran for months more, oil executives were told in a meeting with US President Donald Trump, an administration official said. Analysts warned that such a move would prompt Iran to maintain its own blockade of the Strait of Hormuz, leaving the vital oil shipping route at a near standstill. The US Federal Reserve is widely expected to keep interest rates unchanged later in the day, with markets closely watching its guidance on inflation as energy costs soar. The dollar drifted higher against its main peers. "The longer the conflict persists and the Strait of Hormuz remains disrupted, the more pronounced the inflationary pressures are likely to become," said Anna Macdonald, investment strategy director at Hargreaves Lansdown. International benchmark oil contract Brent crude for June delivery rose to US$117.81 a barrel, its highest level since the fragile ceasefire between the US and Iran came into effect. "The market is increasingly shifting towards a view that no longer expects a quick and lasting peace, nor an immediate reopening of the Strait of Hormuz," said Arne Lohmann Rasmussen, chief analyst at Global Risk Management. Kathleen Brooks, research director at trading platform XTB, warned "This is a new phase of the war in Iran, and we could now see oil prices go back to the March highs around US$120 per barrel for Brent." With talks to end the Middle East war appearing to be at a standstill, investors' attention turned to earnings updates. Wall Street's main stock indices were mostly lower in late morning trade. "As with other financial markets, investors appear to be happy to sit on their hands ahead of tonight's monetary policy announcement from the Federal Reserve's FOMC, and as four constituents of the 'Magnificent Seven' prepare to release their latest earnings updates after the close," said David Morrison, senior market analyst at Trade Nation. Investors will be paying particular attention to spending on artificial intelligence by Amazon, Google, Meta and Microsoft - and whether it is translating into revenue. "Given the outsized weighting of these companies in the index, and the enormous capital expenditure they have announced to build AI capabilities, these results will be closely watched by investors," Hargreaves Lansdown's Macdonald added. Tech stocks took a hit on Tuesday following a report in the Wall Street Journal that ChatGPT-maker OpenAI had missed targets on user numbers and revenue. Stock markets in London, Paris and Frankfurt finished in the red, despite some major companies spiking on strong earnings reports. Shares in Swiss banking giant UBS jumped more than three per cent as its net profit rose 80 per cent in the first quarter, beating expectations. Strong quarterly profit growth led shares in German sportswear giant Adidas to jump more than eight per cent in Frankfurt. After a weak lead from Wall Street, Asian stock markets mostly rose Wednesday, with Hong Kong up more than one per cent.
Oil spikes while stocks slip ahead of US Fed rate decision Oil prices jumped as fears grew that the Strait of Hormuz could stay blocked. LONDON: Oil prices shot higher Wednesday (Apr 29) on concerns of an extended blockade of the Strait of Hormuz, while Wall Street stocks mostly …
See this event through different lenses
Compare how Western, Iranian, Israeli, Global South, and Pro-Peace perspectives frame this event.
Compare PerspectivesLoading notes...
U.S. diesel prices reached a reported record average of $5.85 per gallon this Friday, with officials attributing the spike to ongoing conflicts with Iran disrupting global fuel supplies. Analysts suggest these increases may lead to higher transportation and consumer costs, while regular gasoline also rose to an average of $4.
15 per gallon, up from $3.20 a year prior.
According to unverified accounts provided by a relative, Valivade served as a refuge for approximately 5,000 Polish refugees between 1942 and 1948, a period marked by the displacement of civilians following the 1939 invasion of Poland. The source claims that individual survivors, including a girl reportedly disguised to avoid danger, found temporary stability at the settlement, which is locally known as "Drugi Dom.
The United States and Israel have reportedly engaged in a regional conflict with Iran for nearly six months, during which Strait of Hormuz oil transit has remained significantly below prewar levels of 20 million barrels per day, despite U.S. officials claiming Navy escort operations.
Although the Strait typically facilitates over 20% of global energy trade, analysts suggest that the Islamic Revolutionary Guard Corps may continue to restrict normal transit even if diplomatic agreements are reached. Current tensions have escalated following the expiration of a reported 60-day ceasefire, prompting the U.
S. to announce new economic isolation measures while hostilities appear to have resumed.
Sudan’s civil war, which has persisted for nearly four years, has reportedly displaced over 13 million people and caused significant famine, with casualty estimates suggesting approximately 59,000 deaths. Recent U.S. officials have highlighted the severity of the humanitarian crisis, noting that two-thirds of the population requires aid, while reports from the UN Security Council indicate that armed drones have been responsible for the majority of recorded civilian deaths in the first half of the year.