US stock rebound sputters as Iran risks whipsaw oil

Reports coming in for today mention that A Wall Street rebound sputtered as lingering worries around an escalation of the Middle East conflict whipsawed the oil market.

After rising almost 1% earlier Thursday, the S&P 500 was little changed. In a volatile session, West Texas Intermediate crude hovered near $90 as President Donald Trump vowed more attacks on Iran, saying the US would take Kharg Island. As the fallout from the war continued to fan inflation pressures, US producer prices rose in May at the fastest pace in more than three years.

The report highlighted the rising toll the energy-price shock from the closure of the Strait of Hormuz is taking on the US economy. With no quick resolution to the conflict in sight, other goods and services are starting to become more expensive as firms pass on elevated energy and transportation costs.

“This inflationary spike is likely temporary and will subside once the Iran war ends, but there is increasing concern that the Iran conflict will persist for some time,” stated Clark Bellin at Bellwether Wealth. “The negatives of rising crude prices and high inflation are outweighed by the incredible earnings power and AI productivity upside that are pushing stocks elevated.”