Oil prices are key driver of stock market, potential inflation concerns

From Yahoo Finance: 2025-06-23 11:59:00

Stocks remain resilient despite Middle East conflict, with strategists highlighting oil prices as key market driver. Oil prices fell on Monday, with Brent crude slipping below $77 and WTI futures hitting $73. Stocks rose as a result, with the S&P 500 up 0.2% and Nasdaq up 0.4%. A significant spike in oil prices, up to $120 a barrel, would impact equities market. Concerns arise over potential inflationary impacts and threats to business cycle. Iran’s response to US strike on nuclear facilities will influence oil prices, potential closure of Strait of Hormuz could send prices higher. Iran’s parliament has voted to close the Strait of Hormuz, but final decision lies with Supreme National Security Council and Supreme Leader. Despite saber-rattling, consensus on Wall Street is that a Strait of Hormuz closure is not likely. Closing the strait may hurt most countries, including Iran, more than the US, as the US is now a net exporter of energy.



Read more at Yahoo Finance: Oil prices are now the stock market’s biggest driver