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Oil prices slipped slightly on Wednesday, even as tensions between the United States and Iran flared again, while investors turned their attention to key U.S. inflation data that could offer fresh clues about the Federal Reserve's interest-rate path.
International benchmark Brent crude traded at $91.2 per barrel, and U.S. benchmark West Texas Intermediate (WTI) stood at $87.9 as of 7:30 a.m. GMT, both posting modest declines despite the latest exchange of fire between the two sides that spilled across the region, dampening hopes for a peace deal.
Major Asian exchanges reversed the previous session’s gains, with Japan’s Nikkei 225 falling 1.9% and South Korea’s Kospi dropping 4.5%.
Both tech-heavy markets were also said to be under selling pressure from investor positioning ahead of SpaceX’s Wall Street debut, as traders sold existing holdings to free up capital for the share sale. Reuters reported that an estimated $1.5 billion in foreign-exchange demand tied to the transaction had weighed on the South Korean won in recent weeks.
European shares were mostly flat or posted slight gains, with the Stoxx Europe 600 and France’s CAC 40 little changed. Germany’s DAX 30 gained 0.3%, the U.K.’s FTSE 100 rose 0.03%, and Spain’s IBEX 35 advanced 0.4%.
Türkiye’s benchmark BIST 100 index opened 0.1% lower at 13,725.21 points. Meanwhile, U.S. stock futures pointed lower, led by technology shares, with Nasdaq futures down 0.6%.
Precious metals and cryptocurrencies also moved lower, with gold falling 1.6% to $4,190 and silver losing 1.2%, while palladium declined 1.5% to $1,190 and platinum dropped 2.8% to $1,170.
Bitcoin traded 2.3% lower at $61,700 and ethereum fell 2.4% to $1,640, while the total cryptocurrency market capitalization declined 2.2% to $2.13 trillion.
Geopolitical concerns intensified after the latest exchange of attacks between Washington and Tehran clouded hopes for a diplomatic breakthrough. U.S. forces struck sites in Iran after a helicopter was downed on Monday, prompting retaliatory attacks on American bases in Bahrain and Jordan.
Investors were also awaiting U.S. consumer price data due later in the day. Markets expect the Consumer Price Index to rise 0.5% in May from the previous month and 4.2% from a year earlier, a reading that could reinforce expectations that the Federal Reserve will keep interest rates higher for longer.
Meanwhile, the U.S. Energy Information Administration (EIA) raised its 2026 oil price outlook, citing supply risks tied to the Strait of Hormuz and declining global inventories, adding to concerns that elevated energy costs could keep inflationary pressures in place.
The agency now expects Brent crude to average $95.39 per barrel this year, up from a previous forecast of $94.85, while WTI is projected to average $88.32, compared with an earlier estimate of $85.68. The EIA added that disruptions around the Strait of Hormuz continue to fuel volatility in global oil markets and warned that production and trade flows may not return to pre-conflict levels until early 2027.
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