Markets retreat as Middle East conflict spikes oil prices

Brent crude surged to $78.22 per barrel as U.S. and Iranian forces traded missile and drone strikes, prompting Tehran to shutter the Strait of Hormuz. The geopolitical flare-up triggered a sharp sell-off in tech stocks while government bond yields climbed, signaling a flight from risk across global indices.

Editorial·July 13, 2026·reads: 2,940

Markets retreat as Middle East conflict spikes oil prices

Nasdaq futures and MSCI's global index dipped into the red as investors recalibrated portfolios against a backdrop of escalating regional warfare and skepticism regarding AI-driven valuations. The U.S. dollar softened slightly, with market attention shifting toward Federal Reserve Chair Kevin Warsh’s impending appearance before Congress. Analysts suggest that the volatility in energy markets is compounded by the shadow of U.S. mid-term elections, which may constrain President Trump’s maneuvering room on existing oil flow agreements.