United States equity markets closed mixed on Tuesday (Wednesday AEDT) as investors navigated volatile trading conditions driven by developments in the Iran conflict and sharp swings in oil prices.
The Dow Jones Industrial Average slipped 34.3 points, or 0.1%, to finish at 47,706.5. The S&P 500 declined 14.5 points, or 0.2%, to close at 6,781.5, while the Nasdaq Composite edged 1.1 points higher, ending virtually unchanged at 22,697.1.
Markets experienced choppy trading throughout the session as oil prices retreated sharply from earlier war-driven highs.
Crude had surged close to $120 a barrel on Monday amid fears that escalating tensions could disrupt supplies in the Middle East, particularly through the strategically vital Strait of Hormuz.
However, prices fell as traders increasingly anticipated that a group of nations could tap emergency crude reserves to offset potential supply disruptions caused by the conflict.
Oil declined further after U.S. Energy Secretary Chris Wright said in a since-deleted social media post that the U.S. Navy had escorted a tanker through the Strait of Hormuz.
The White House later clarified the situation, with press secretary Karoline Leavitt stating that the U.S. had not escorted a tanker through the key shipping corridor.
Adding to market unease, CBS News reported that U.S. officials had observed indications that Iran may be preparing to deploy mines in the Strait of Hormuz.
Despite the tensions, crude prices ultimately settled sharply lower for the day. West Texas Intermediate futures dropped 8.2% to $87.04 per barrel, while Brent crude fell 11.3% to close at $87.80.
The mixed session follows a volatile day on Wall Street in which the Dow erased a deficit of more than 800 points after oil prices eased as U.S. President Donald Trump suggested the conflict might be nearing resolution.
“We’re achieving major strides toward completing our military objective,” Trump said on Monday.
Defence Secretary Pete Hegseth also noted on Tuesday that “Today will be our most intense day of strikes inside Iran”, adding that Iran is “badly losing”.
Meanwhile, U.S. Treasury yields moved slightly higher. The yield on the 10-year Treasury rose 1.3% to 4.156%, while the two-year yield climbed 1.1% to 3.59%.
