Oil Prices Slide as Markets Monitor Second Wave of Airstrikes

Oil prices eased on June 11, 2026, after an early surge when the U.S. launched a second round of airstrikes against Iran, keeping Middle East tensions at the forefront of market concerns. Brent crude, the global benchmark, dropped 90 cents to $92.20 per barrel, while U.S. benchmark crude fell 82 cents to $89.21 per barrel. The decline followed a period of volatility driven by geopolitical risks, particularly the ongoing conflict in the Middle East, which has effectively closed the Strait of Hormuz to oil tankers, disrupting crude deliveries from the Persian Gulf. Before the late-February escalation of the war, Brent crude was trading around $70 per barrel. The surge in oil prices has contributed to rising inflation, with a U.S. consumer price report on June 10 showing the fastest increase in three years. U.S. financial markets showed resilience, with futures for the S&P 500 up 0.8% after two consecutive days of losses, while Dow Jones Industrial Average futures gained 0.7% ahead of the opening bell. Nasdaq futures, however, slipped 1%. The broader market remains cautious amid concerns over AI-related stocks, which have experienced sharp swings in recent days. Chipmakers such as Micron Technology saw a partial recovery overnight, rising 3% after a 4.7% loss on June 10. The company had faced steep declines earlier in the week, including a 7.7% drop on June 4 and a 13.3% plunge on June 5, followed by a 9.9% rebound on June 8. Other chip stocks, including Intel, Teradyne, Lam Research, and Applied Materials, all surged about 4% in after-hours trading. The volatility in AI stocks reflects broader unease over whether their rapid gains were justified by fundamentals or driven by speculative frenzy. Investors are also pulling cash to prepare for high-profile IPOs, including SpaceX’s anticipated market debut later in the week. Traders are betting the Federal Reserve will raise interest rates at least once this year due to persistent inflation and a robust U.S. job market. High yields are seen as a threat to risk assets, including stocks and cryptocurrencies, particularly those deemed overvalued. In Europe, major indices showed mixed performance, with Germany’s DAX up 0.2%, France’s CAC 40 gaining 0.8%, and the UK’s FTSE 100 adding 0.9%. In Asia, Japan’s Nikkei 225 edged up less than 0.1% to 64,217.27 after an earlier decline, while South Korea’s Kospi rose 0.4% to 7,763.95. Hong Kong’s Hang Seng fell 0.7% to 24,249.29, and the Shanghai Composite dropped 0.2% to 3,987.01. Australia’s S&P/ASX 200 shed 0.2% to 8,633.20, Taiwan’s Taiex slipped 0.2%, and India’s Sensex rose 0.2%.