Oil prices continue to rise as geopolitical tensions grow

Oil prices moved higher in volatile trading after the United States launched another wave of military strikes against Iran and reinstated a naval blockade of Iranian ports near the Strait of Hormuz. WTI crude rose above $80 per barrel, while Brent climbed to nearly $86, as concerns over global oil supply disruptions intensified.

In the stock market, U.S. stock futures edged higher on Wednesday after softer-than-expected inflation data boosted optimism that the Federal Reserve may slow the pace of future interest rate hikes. Dow futures rose 0.1%, S&P 500 futures gained 0.2%, and Nasdaq 100 futures climbed 0.7%, while Asian markets also advanced, led by a 6.3% rally in South Koreas Kospi.

June U.S. inflation cooled more than expected, with the annual CPI rate falling to 3.5%, prompting traders to sharply reduce expectations of a July rate hike.

In Asia, China‘s economy grew 4.3% year-over-year in the second quarter, its slowest pace since late 2022 and below both economists’ expectations of 4.5% and the governments annual growth target of 4.5%–5%. The slowdown was driven by weak domestic demand and a sharp decline in investment, particularly in real estate, infrastructure, and manufacturing.