Oil prices climbed after Israeli Prime Minister Benjamin Netanyahu told CNBC that Israel and the U.S. were prepared to attack Iran again if necessary, sparking renewed fears of escalation in the Middle East. Netanyahu's comments, aired Wednesday, highlighted tactical disagreements between the U.S. and Israel but emphasized their overall strategic alignment. He also referenced former President Trump's warning to Iran of a 'full scale return to military action' if required, though Netanyahu noted the ultimate decision would rest with the U.S. president. These remarks unsettled oil traders, pushing both Brent and WTI crude prices higher, though they remained below the $100-per-barrel threshold. Stock futures fell, with the S&P 500 ending a nine-day winning streak, and Asian markets opened lower on Thursday as investors remained cautious due to ongoing Middle East tensions [1].
Despite these tensions, there was a positive development as Israel and Lebanon agreed to implement a ceasefire. In the U.S., the House of Representatives voted in favor of a war powers measure to end American military involvement in the Iran conflict unless Congress authorizes continued action. This bipartisan vote signals growing congressional resistance to prolonged U.S. engagement in the region, though the measure must still pass the Senate and could face a presidential veto [1].
Former President Trump suggested on Wednesday that Iran had agreed not to pursue nuclear weapons, but added that 'they can change their mind.' Iran's Foreign Ministry declined to comment on Trump's interview, while a government official described Trump's remarks as 'misleading.' These developments followed an Iranian strike on Kuwait International Airport, which came a day after U.S. Central Command conducted 'self-defense strikes' on Qeshm Island in the Persian Gulf [1].
In corporate news, Broadcom shares (AVGO) plunged nearly 14% after-hours following weaker-than-expected software revenue and no increase to its full-year AI chip sales target. CrowdStrike (CRWD) shares also dropped around 10% in after-hours trading, despite narrowly beating Wall Street expectations for its fiscal first-quarter results. In capital markets, SpaceX priced its IPO at $135 per share, implying a valuation of about $1.77 trillion, which would place it above Tesla (TSLA) in market capitalization if the offering raises the anticipated $75 billion through the sale of 555.6 million shares [1].
CONCLUSION
Renewed escalation fears in the Middle East, driven by Netanyahu's comments and recent military actions, led to higher oil prices and a pullback in global equities. While a ceasefire between Israel and Lebanon and U.S. congressional moves signal some appetite for de-escalation, market sentiment remains cautious. Major corporate earnings and IPO news added to market volatility.