Oil Price

• U.S. stock markets declined Tuesday with the S&P 500 falling 0.9% from record highs as technology stocks weakened and oil prices continued rising amid uncertainty over the Iran conflict. • Benchmark U.S. crude jumped $3.43 to $101.50 per barrel, while Brent crude climbed $3.62 to $107.83 per barrel, as President Trump said the U.S.-Iran ceasefire was on "life support" after rejecting Iran's latest peace proposal. • Brent crude has surged 50% from pre-war levels around $70, contributing to inflation pressures globally and straining U.S. households through higher gasoline and goods prices tied to new tariffs.

• A failed peace proposal over the weekend propelled oil prices and 10-year Treasury yields higher on Monday morning, with equity futures opening modestly lower. • Markets shrugged off geopolitical risks last week as oil declined on Iran ceasefire comments, but renewed tensions reversed that trend amid global energy volatility. • Gas prices rose nationwide, complicating inflation outlook with headline CPI above 3.5% despite easing core PCE, dimming Fed rate cut prospects.

• Indian equities are expected to remain highly sensitive to geopolitical developments this week, with markets tracking the ongoing US-Iran situation and fluctuating crude oil prices that could trigger sharp movements in large-cap stocks. • Foreign investors have withdrawn Rs 14,231 crore from Indian equities so far in May amid global macroeconomic uncertainties, signaling reduced confidence in the market amid external headwinds. • Key macroeconomic releases this week include India's April CPI inflation data and US inflation prints (CPI and PPI), which analysts warn could materially shape Federal Reserve rate-cut expectations and global risk sentiment.

• Asian stock markets fell broadly on Friday as renewed clashes between the US and Iran strained ceasefire efforts, with missile and drone attacks prompting US retaliatory strikes on Iranian military facilities. • Tokyo's Nikkei 225 dropped 1.1% to 62,174, retreating from a record high of 62,833 reached Thursday, while SoftBank Group lost over 5% and Hong Kong's Hang Seng fell 1.3% to 26,289. • Oil prices climbed amid Middle East uncertainty, with Brent crude rising 1.1% to $101.13 per barrel—roughly 44% higher than pre-war levels in late February.

• The S&P 500 fell 0.4% or 28.01 points to 7,337.11 on Thursday, retreating from its all-time high, while the Dow dropped 313.62 points or 0.6% to 49,596.97 and Nasdaq slipped 0.1% or 32.75 points to 25,806.20. • Oil prices yo-yoed due to Wall Street's waiting on hopes for a deal to end the Iran war, with earlier sharp swings from dashed expectations of reopening the Strait of Hormuz; Iran created a government agency to vet and tax vessels passing through, potentially raising fuel costs. • Standouts included Axon Enterprise rallying 10.6% after raising its revenue forecast due to counter-drone product growth, and Albemarle rising 3% on better-than-expected results, while Shake Shack tumbled 28.3% and Whirlpool fell 11.9% on weak earnings.

• Asian stock markets retreated from recent record peaks as escalating Middle East tensions revived concerns over crude oil supply disruptions and energy price stability. • The geopolitical escalation triggered steep losses in oil markets, reversing earlier gains and creating volatility across regional equity indices. • Rising energy supply concerns underscore the fragility of the recent market rally despite strong AI sector performance, with investors reassessing risk exposure to conflict-affected regions.

• Brent crude futures rose 88 cents or 0.9% to $102.15 a barrel, while WTI advanced $1.12 or 1.2% to $96.20, trimming prior 7% losses after US President Donald Trump called direct talks with Iran premature. • A senior Iranian lawmaker dismissed the US peace proposal as a 'wish list' rather than practical, amid demands to halt Tehran's nuclear program and reopen the Strait of Hormuz. • Markets assess if Middle East peace efforts will succeed, with strategist Hiroyuki Kikukawa noting discussions may continue until the US-China summit but uncertainty persists afterward.