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Oil worries hit stocks as Fed hike odds climb

8/12/2026

48 9 Full Breakdown

Summary

Markets Slip

The S&P 500 fell 0.3%, the Dow slipped 184 points (0.3%), and the Nasdaq dropped 0.6% on Tuesday.
Brent crude briefly rose above $90 per barrel before settling at $88.91, up 1.4% from Monday.
Regular-gasoline averaged $4.01 per gallon, up from under $3.14 a year earlier, per AAA.
Traders saw a 46% chance of a Federal Reserve (Fed) rate hike in September, while the 10-year Treasury yield fell to 4.69%.

Summary

Iran Closes Strait

Iran announced the Strait of Hormuz will remain closed until its conditions are met, sparking global oil-flow concerns.
Pakistan defence minister Khawaja Asif told Bloomberg the United States and Iran are close to “some sort of an arrangement.”
Qatar’s foreign ministry said Iran-Oman shipping talks in the Strait are advanced, warning that the unresolved closure pressures stocks and market sentiment.

History

Historical Context

The October 1973 OAPEC oil embargo, led by Saudi King Faisal, forced crude prices to jump from $3 to about $12 a barrel—a 300% rise that plunged the world into recession. That shock still echoes today as Brent hovers near $90, the S&P 500 slips, and Iran’s Strait of Hormuz closure threatens similar market volatility.

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Markets Slip

The S&P 500 fell 0.3%, the Dow slipped 184 points (0.3%), and the Nasdaq dropped 0.6% on Tuesday.
Brent crude briefly rose above $90 per barrel before settling at $88.91, up 1.4% from Monday.
Regular-gasoline averaged $4.01 per gallon, up from under $3.14 a year earlier, per AAA.
Traders saw a 46% chance of a Federal Reserve (Fed) rate hike in September, while the 10-year Treasury yield fell to 4.69%.

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