The U.S. Central Command noted in a post on X that American forces have destroyed five Iranian crude oil carriers on Tuesday after the IRGC targeted an American Navy warship with ballistic missiles twice over the past two days.
On the economic front, markets will be watching for cues from the Federal Reserve’s monetary policy meeting scheduled for next week.
The Federal Open Market Committee (FOMC) meeting is scheduled for Sept. 15–16, after which the central bank will announce its interest rate decision.
U.S. stock futures traded mixed in the overnight session late Tuesday, with the Dow trending lower and the S&P 500 and Nasdaq climbing higher even as Brent crude prices edged closer to $100 a barrel.
Dow futures fell 0.11%, while the S&P 500 climbed 0.05% and the Nasdaq-100 gained 0.18% at 10:18 PM EDT.
On Tuesday, all three benchmark indexes ended the session lower. The Dow Jones Industrial Average and S&P 500 ended the session 1.18% and 0.58% lower, while the Nasdaq Composite fell 0.32% at close.
Index
Move
Close
Dow Jones Industrial Average
-1.18%
53,414.25
S&P 500
-0.58%
7,673.52
Nasdaq Composite
-0.32%
26,421.41
Key US Market Drivers
Rising oil prices amid escalating tensions in the Middle East weighed heavily on stock markets on Tuesday.
At the time of writing, Brent crude futures expiring in November were up about 1.49% to trade at $99.38 a barrel, while WTI crude futures expiring in October were trading at $94.46 per barrel, up 1.54%.
The U.S. Central Command noted in a post on X that American forces have destroyed five Iranian crude oil carriers on Tuesday after the Islamic Revolutionary Guard Corps (IRGC) targeted a U.S. Navy warship with ballistic missiles twice over the past two days. It added that no American personnel were harmed in the strikes.
Brett Erickson, Managing Principal, Obsidian Risk Advisors, said in a post on X that oil spiking to $100 was around the corner. “Oil has now hit $99 per barrel again this morning. $100 is on the way, but that will just be the beginning,” he said.
Erickson added that Trump has lost the ability to control public perception of this war, which is likely to extend far into 2027. He added that Iran will also seek to escalate the war in the lead-up to the midterms in November. “$100/barrel? That’s child’s play for what is coming soon,” he said.
Meanwhile, a tariff war between the U.S. and Canada is also impacting markets. Canada imposed retaliatory tariffs ranging from 15% to 50% on a variety of U.S. imports starting Tuesday.
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