Crude oil prices are holding most of their recent gains, though they’ve been retreating the last few hours. Stocks are bouncing back along with Treasuries, while gold and silver are giving up some ground. The dollar is dipping.
Iranian missile and drone attacks continued in the Middle East over the weekend, as did US and Israeli strikes in Iran and Lebanon. President Trump asked several foreign nations to join US efforts to get the Strait of Hormuz reopened, but he has received a mixed response so far. Only a small handful of tankers have transited the waterway since the conflict began Feb. 28 amid worries over mine and missile damage.
Meanwhile, Iran targeted the United Arab Emirates’ main oil trading hub of Fujairah on Saturday. It lies outside the Strait, providing an alternate way for the UAE to get oil to market. Brent crude oil futures tagged $105 a barrel overnight before cooling off. US WTI futures were recently hovering around $95.
Brent, WTI Crude Oil Futures (% Change Since Feb. 27)
Source: TradingView
War talk has largely drowned out central bank chatter recently. But the Federal Reserve is meeting this week, as are several major foreign central banks. The Fed won’t cut interest rates on Wednesday with higher oil prices putting upward pressure on inflation. But investors will be listening for clues on what it might do at the next few meetings.
Finally, Meta Platforms Inc. (META) is reportedly considering thousands of layoffs as it ramps up AI spending. The firm could eliminate 20% of its workforce – at a time when it’s also planning $135 billion in capital expenditures to build out data centers and expand its AI initiatives.
Meta just inked a mega-deal for AI computing capacity with Nebius Group NV (NBIS), for instance. Meta will get $12 billion in services through 2027, plus another potential $15 billion over a half-decade. Meta stock rose 3% in early trading, while Nebius stock jumped 14%.
