{"id":61892,"date":"2026-05-13T10:38:21","date_gmt":"2026-05-13T14:38:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-oil-inventory-plunge-geopolitical-tensions-and-major-corporate-spin-offs\/61892\/"},"modified":"2026-05-13T10:38:21","modified_gmt":"2026-05-13T14:38:21","slug":"global-markets-react-to-oil-inventory-plunge-geopolitical-tensions-and-major-corporate-spin-offs","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-oil-inventory-plunge-geopolitical-tensions-and-major-corporate-spin-offs\/61892\/","title":{"rendered":"Global Markets React to Oil Inventory Plunge, Geopolitical Tensions, and Major Corporate Spin-offs"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Crude inventories plummeted by 4.306 million barrels<\/strong>, far exceeding the estimated draw of 2.007 million, sending oil futures higher.<\/li>\n<li><strong>FedEx (<a href=\"\/stock\/FDX\">FDX<\/a>) announced a major restructuring<\/strong> as its Board of Directors approved the spin-off of <strong>FedEx Freight<\/strong>.<\/li>\n<li><strong>Geopolitical tensions escalated<\/strong> as US Energy Secretary Wright warned that <strong>Iran is &quot;frighteningly close&quot; to a nuclear weapon<\/strong>, while US F-35s began patrols over the Strait of Hormuz.<\/li>\n<li><strong>President Trump is traveling to China<\/strong> with a high-profile delegation of business leaders, including <strong>Elon Musk<\/strong>, <strong>Tim Cook<\/strong>, and <strong>Larry Fink<\/strong>, to discuss trade and energy.<\/li>\n<li><strong>The Federal Reserve faces a significant shake-up<\/strong> following the confirmation of <strong>Kevin Warsh<\/strong>, coinciding with the advancement of the <strong>Clarity Act<\/strong> in Congress.<\/li>\n<\/ul>\n<h2>Energy Markets Surge on Inventory Draw and Iran Tensions<\/h2>\n<p><strong>Brent and US Crude futures<\/strong> rose sharply Wednesday morning following a bullish report from the <strong>Energy Information Administration (EIA)<\/strong>. The data revealed a <strong>significant drop in crude inventories of 4.306 million barrels<\/strong>, more than double the expected 2.007 million barrel draw. <strong>Gasoline inventories also saw a massive decline of 4.084 million barrels<\/strong>, while <strong>Cushing stocks fell by 1.702 million barrels<\/strong>, signaling tightening supply across the US energy complex.<\/p>\n<p>Adding to the upward pressure on prices, <strong>US Energy Secretary Wright<\/strong> stated that <strong>Iran is &quot;frighteningly close&quot; to a nuclear weapon<\/strong>. In response to regional instability, the <strong>US Army<\/strong> confirmed that <strong>F-35 fighter jets<\/strong> are now conducting patrols over territorial waters near the <strong>Strait of Hormuz<\/strong>. Meanwhile, <strong>Iran<\/strong> has proposed a new &quot;service fee&quot; for ships passing through the Strait, a move that could further complicate global maritime trade.<\/p>\n<h2>Corporate Moves: FedEx Spin-off and Tech Innovations<\/h2>\n<p>The <strong>FedEx (<a href=\"\/stock\/FDX\">FDX<\/a>)<\/strong> Board of Directors has officially approved the <strong>spin-off of FedEx Freight<\/strong>, a move aimed at streamlining operations and unlocking shareholder value. This structural change comes as the logistics giant faces a shifting global trade environment. In the tech sector, <strong>LinkedIn<\/strong> announced it will <strong>cut jobs today<\/strong>, continuing a trend of workforce &quot;right-sizing&quot; within the industry.<\/p>\n<p><strong>Meta (<a href=\"\/stock\/META\">META<\/a>)<\/strong> is rolling out <strong>&quot;Incognito Chat&quot; for Meta AI<\/strong> on WhatsApp and its standalone AI app, focusing on private processing for user interactions. Simultaneously, <strong>Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>)<\/strong> and <strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>)<\/strong> have finally closed a long-standing SMS security gap. The release of <strong>iOS 26.5<\/strong> brings end-to-end encrypted <strong>RCS messaging<\/strong> to conversations between Android and iPhone users.<\/p>\n<h2>Geopolitics and Macroeconomic Shifts<\/h2>\n<p><strong>President Trump<\/strong> is set to arrive in <strong>China<\/strong> accompanied by a &quot;who&#39;s who&quot; of American industry, including <strong>Elon Musk (Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>))<\/strong>, <strong>Tim Cook (Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>))<\/strong>, and <strong>David Solomon (Goldman Sachs (<a href=\"\/stock\/GS\">GS<\/a>))<\/strong>. The visit aims to address trade imbalances and energy market dominance. This occurs as <strong>Russian President Vladimir Putin<\/strong> signaled a continued buildup of <strong>strategic nuclear forces<\/strong> and missile systems designed to overcome Western defenses.<\/p>\n<p>In Washington, the confirmation of <strong>Kevin Warsh<\/strong> to the Federal Reserve marks the beginning of a <strong>major Fed shake-up<\/strong>. This move is paired with the <strong>Clarity Act<\/strong>, which seeks to redefine the central bank&#39;s transparency and mandate. Across the Atlantic, the <strong>European Central Bank (ECB)<\/strong> remains divided, with official <strong>Kocher<\/strong> stating that the June meeting will be a &quot;decision between a hike and a hold,&quot; as the <strong>IMF<\/strong> warns of a potential global recession if oil prices remain elevated through 2027.<\/p>\n<h2>Market Snapshot<\/h2>\n<p>At the market open, the <strong>Nasdaq<\/strong> rose <strong>51.30 points (0.20%) to 26,139.50<\/strong>, while the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> remained nearly flat, up <strong>0.71 points (0.01%) at 7,401.67<\/strong>. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> lagged behind, dropping <strong>182.73 points (0.37%) to 49,577.83<\/strong>. Investors remain cautious as <em>volatility in the UK Gilt market<\/em> persists, driven by a potential leadership contest within the British government involving <strong>Wes Streeting<\/strong> and <strong>Ed Miliband<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Crude inventories plummeted by 4.306 million barrels, far exceeding the estimated draw of 2.007 million, sending oil 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