Daily News
Shares Slide, Oil Prices Elevated as U.S.-Iran Truce Prospects Dim
05 May'26
Today in Brief
Shares slide, oil prices elevated as U.S.-Iran truce prospects dim.
Global markets, commodities, and geopolitical tensions continue to drive sharp swings across regions.
Shares slide, oil prices elevated as U.S.-Iran truce prospects dim
Stocks in Asia slid on Tuesday while oil prices eased but remained well above $100 a barrel, as the U.S. and Iran continue to work towards a truce while at the same time trading blows over the Strait of Hormuz. Traders also had their eyes on the yen JPY= after the Japanese currency briefly jumped in the previous session, stoking speculation of another round of intervention from Tokyo. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3%. Shares in Australia fell 0.4% in thinned Asia trade, while markets in Japan and South Korea were closed for a holiday. Nasdaq futures and S&P 500 futures edged down about 0.1% each, while EUROSTOXX 50 futures lost 0.2% and FTSE futures fell 0.75%.
Dow tumbles 550 points as oil prices rise and investors fear Iran conflict could intensify again
Stocks fell on Monday as the latest developments in the Middle East sent oil prices higher, sparking further worries about instability in the region. The Dow Jones Industrial Average shed 557.37 points, or 1.13%, closing at 48,941.90. The S&P 500 slid 0.41% to end at 7,200.75, while the Nasdaq Composite lost 0.19% to settle at 25,067.80. On Monday, the United Arab Emirates said it had intercepted a number of missiles fired from Iran. That's the first time the UAE's missile alert system was activated since the U.S.-Iran ceasefire began last month. Oil prices increased following the action. U.S. West Texas Intermediate crude futures rose 4.39% to settle at $106.42 per barrel, while international benchmark Brent crude futures were up 5.8% to end at $114.44.
Gold held near $4,500 an ounce on Tuesday after dropping nearly 2% in the previous session
Gold held near $4,500 an ounce on Tuesday after dropping nearly 2% in the previous session, pressured by intensifying tensions in the Middle East that have driven energy prices higher and amplified inflation concerns. US forces repelled Iranian attacks while escorting two US-flagged vessels through the Strait of Hormuz, while the UAE reported intercepting cruise missiles launched by Iran and attributed a major fire at its Fujairah port to an Iranian drone strike. These developments followed President Trump's plan to restore shipping through Hormuz and support stranded vessels, although shipowners remain cautious amid elevated security risks.
WTI crude futures held above $104 per barrel on Tuesday, following a surge of more than 4% in the prior session
WTI crude futures held above $104 per barrel on Tuesday, following a surge of more than 4% in the prior session, as Middle East tensions intensified sharply. The US and Iran exchanged fire in the Strait of Hormuz, raising uncertainty over the durability of the four-week ceasefire. US forces repelled Iranian attacks while escorting two US-flagged vessels through the strategic waterway, stating they had "defended all commercial ships" from drones and small boats deployed by Tehran. Meanwhile, the UAE reported intercepting Iranian missiles and confirmed a fire at its Fujairah oil terminal.
Iran attacks UAE; U.S. says it sank boats in Strait of Hormuz
An already shaky ceasefire between the United States and Iran appeared to be on the verge of collapse Monday, as the United Arab Emirates came under attack from Iranian drones and missiles and the U.S. said it sank Iranian boats in the Strait of Hormuz. President Donald Trump, in a Fox News interview later Monday, warned Iran that it will be "blown off the face of the earth" if it targets U.S. ships that are protecting commercial vessels transiting the strait. Trump also said in a Truth Social post that a South Korean cargo ship had come under fire from Iran in the waterway. "Perhaps it's time for South Korea to come and join the mission!" Trump wrote in the post. Stock market indices closed sharply lower and oil prices rose on Monday, as investors' fears grew that the war's impact on the global economy could be exacerbated or prolonged.
Australia central bank raises rates to highest since 2024 as inflation stays elevated
Australia's central bank on Tuesday raised its policy rate to 4.35%, its highest level since December 2024, amid elevated inflation. The move by the Reserve Bank of Australia was in line with expectations in a Reuters poll of economists and marked the third consecutive rate increase. Eight members of the RBA's board voted for the rate hike, while one member voted to hold rates at 4.1%. In its release, the RBA said that inflation had picked up materially in the second half of 2025, and that the conflict in the Middle East had led to sharply higher fuel and related commodity prices, further adding to inflation. The central bank said that inflation is likely to remain above its 2% to 3% target for some time and that the risks remain elevated.
India is burning more coal as extreme heat and the Iran war squeeze energy supplies
India, the world's third-largest carbon dioxide emitter, is burning more coal as energy supply disruptions due to the Iran war and a nationwide heatwave have boosted demand for the dirty fuel. More than 70% of India's power is generated from coal-fired plants, and energy experts told CNBC that the share is expected to rise this year. In February, India announced that more than 52% of its total installed power generation capacity came from non-fossil fuel sources, with the majority coming from solar, hydropower and wind. Yet, coal-fired power plants, which account for nearly 43% of total generation capacity, remain the dominant source of energy.
Warsh's take on Fed independence is met with confusion and some concern
Most people don't know and don't have much reason to care what a currency swap line is, except that the financial instrument could soon help markets understand what Federal Reserve Chair nominee Kevin Warsh's unique ideas about Fed independence really mean. Warsh has said categorically the Fed should be "strictly independent" in the making of monetary policy. But he adds that he's willing to work with Congress and the Trump administration on "non-monetary matters." In answers to senators' questions following his April 21 confirmation hearing, he elaborated: "Fed officials are not entitled to the same special deference in areas affecting international finance, among other matters." Warsh has also talked often about a new "Fed/Treasury accord" that he's suggested could govern the Fed's balance sheet, though in ways he has yet to detail.
Apple holds talks with Intel, Samsung for US chipmaking
Apple has held exploratory discussions about using Intel and Samsung Electronics to produce the main processors for its devices, Bloomberg News reported on Monday, citing people familiar with the deliberations. Apple executives have made visits to a Samsung plant under development in Texas and, separately, also held preliminary talks with Intel about enlisting the company's chipmaking services, Bloomberg reported. While the move would offer Apple a secondary option beyond its longtime partner Taiwan Semiconductor Manufacturing Co, the iPhone-maker is also concerned about using non-TSMC technology, the report said, citing worries about reliability and scale. Reuters could not immediately verify the report. Apple and Samsung did not immediately respond to Reuters' requests for comment. Intel declined to comment.
Chipmaker Onsemi forecasts quarterly revenue above estimates on resilient auto demand
Onsemi forecast second-quarter revenue above Wall Street expectations on Monday, betting on resilient demand for its chips as the automotive industry recovers. The forecast underscores the rebound in demand for Onsemi's silicon carbide chips that are critical for extending the range of electric vehicles. "We exceeded expectations as demand strengthened through the quarter and we have moved beyond the cyclical trough on a path to recovery," said CEO Hassane El-Khoury. Shares of the company fell around 5% in extended trading after rising over 88% this year and over 64% last month. Onsemi expects second-quarter revenue between $1.54 billion and $1.64 billion, compared with estimates of $1.53 billion, according to data compiled by LSEG. It forecast quarterly adjusted earnings per share (EPS) of between 65 cents and 77 cents, while analysts expect 65 cents.
Chevron CEO voices concern over Strait of Hormuz ship safety
Chevron Corp. Chief Executive Officer Mike Wirth expressed concern about the security of ship transit through the Strait of Hormuz as the US works to restore passage through the Persian Gulf waterway. The US and Iran exchanged fire in the region on Monday as American military forces began escorting vessels through the strait. The escalation followed US President Donald Trump's plan to reopen Hormuz and threatened a fragile ceasefire declared last month. "I've been in touch with our people that manage our shipping assets in the region and we remain concerned about the security of transit," Wirth said during a Bloomberg TV interview at the Milken Institute Global Conference. "So it seems like we still have some issues to work through."
Rivian stock rises after Volkswagen buys $1B stake
Rivian Automotive Inc. shares rose 0.5% Monday afternoon after Volkswagen AG purchased 62.9 million shares of the electric vehicle maker for $1 billion. The stock pared earlier losses but remained down 2% amid broader market weakness. Volkswagen acquired the shares at $15.90 each through a private placement transaction dated April 30, 2026, according to a Securities and Exchange Commission filing. The transaction was conducted under an investment agreement originally dated November 13, 2024, and amended on April 17, 2025, between Rivian, Volkswagen AG, and Volkswagen International America Inc. Following the acquisition, Volkswagen holds 209.8 million Rivian shares through its wholly-owned subsidiary Volkswagen US-Holding Inc., formerly known as Volkswagen International America Inc.
