{"id":62067,"date":"2026-05-18T10:38:21","date_gmt":"2026-05-18T14:38:21","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-turn-positive-amid-iran-tensions-us-housing-data-surprises-to-the-upside\/62067\/"},"modified":"2026-05-18T10:38:21","modified_gmt":"2026-05-18T14:38:21","slug":"oil-prices-turn-positive-amid-iran-tensions-us-housing-data-surprises-to-the-upside","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-prices-turn-positive-amid-iran-tensions-us-housing-data-surprises-to-the-upside\/62067\/","title":{"rendered":"Oil Prices Turn Positive Amid Iran Tensions; US Housing Data Surprises to the Upside"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Oil futures turned positive in volatile trading<\/strong> as escalating tensions between the US and Iran and reports of a &quot;blockade breach&quot; sparked supply disruption fears that outweighed broader economic concerns.<\/li>\n<li><strong>The US NAHB Housing Market Index for May rose to 37<\/strong>, significantly beating the consensus estimate of 34 and suggesting unexpected resilience in the residential construction sector.<\/li>\n<li><strong>Tehran has been given &quot;days, not weeks&quot;<\/strong> to present a viable deal to the Trump administration, according to sources, while Iran continues to demand the 100% release of its frozen assets.<\/li>\n<li><strong>UK Prime Minister Keir Starmer rejected calls to resign<\/strong>, describing himself as &quot;not going to walk away&quot; despite internal party pressure and &quot;lame duck&quot; labels from political analysts.<\/li>\n<li><strong>The US Senate is moving toward a $72 billion reconciliation bill<\/strong> focused on funding for ICE and CBP, with a &quot;vote-a-rama&quot; expected to begin this Thursday.<\/li>\n<\/ul>\n<h2>Geopolitical Tensions Drive Oil Volatility<\/h2>\n<p><strong>Oil futures<\/strong> reversed early losses on Monday, turning positive as the market reacted to a series of escalations in the Middle East. Reports from the Fars news agency indicated that an <strong>Iranian vessel successfully passed through a US blockade<\/strong>, a move that has heightened fears of direct naval confrontations. Major energy players such as ExxonMobil (<a href=\"\/stock\/XOM\">XOM<\/a>) and Chevron (<a href=\"\/stock\/CVX\">CVX<\/a>) are being closely watched as supply chain risks move back to the forefront of market pricing.<\/p>\n<p>Sources close to the Iranian negotiation team told the <strong>Tasnim News Agency<\/strong> that while the US has shown some flexibility, substantive differences remain. The US has reportedly offered to unfreeze only <strong>25% of Iran\u2019s funds<\/strong> on a phased timetable, a proposal Tehran has rejected in favor of a total release of assets. An <em>Al Jazeera<\/em> source noted that Iran now has &quot;days, not weeks&quot; to offer President Trump a breakthrough to end the current deadlock.<\/p>\n<h2>US Housing Market Shows Signs of Life<\/h2>\n<p>In a surprise data release, the <strong>NAHB Housing Market Index for May came in at 37<\/strong>, outperforming the estimated 34. This uptick suggests that homebuilders are finding ways to navigate the current interest rate environment, potentially providing a boost to stocks like D.R. Horton (<a href=\"\/stock\/DHI\">DHI<\/a>) and Lennar (<a href=\"\/stock\/LEN\">LEN<\/a>). <em>Market analysts suggest this beat may indicate a stabilization in housing demand despite ongoing affordability challenges.<\/em><\/p>\n<p>Simultaneously, the US Senate is preparing for a high-stakes week as GOP leaders plan to bring a <strong>$72 billion reconciliation bill<\/strong> to the floor. The funding is specifically earmarked for <strong>ICE and CBP<\/strong>, with markups scheduled for Tuesday and Wednesday. This legislative push comes as Energy Secretary <strong>Chris Wright<\/strong> and <strong>Dr. Mehmet Oz<\/strong> are scheduled to address a major gathering, signaling the administration&#39;s dual focus on border security and energy policy.<\/p>\n<h2>UK Political Turmoil and Central Bank Activity<\/h2>\n<p>In the United Kingdom, <strong>Prime Minister Keir Starmer<\/strong> is fighting to maintain control of his government amid rumors of a leadership challenge. Starmer stated he would not &quot;get lost in a debate&quot; about his future and refused to set a timetable for standing down. Analysts are closely watching the upcoming by-election, noting that if <strong>Andy Burnham<\/strong> wins his seat, he could become a primary contender to replace Starmer, a scenario the market has only <em>partially priced in<\/em>.<\/p>\n<p>On the monetary front, the <strong>Bank of England (BoE)<\/strong> sold <strong>\u00a3825 million<\/strong> in an APF Gilt sale today, maintaining a cover ratio of 2.56. This move comes as the UK continues to navigate post-Brexit economic adjustments. Starmer reiterated his stance on Brexit, stating he is focused on immediate turnarounds rather than long-term debates about past decisions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Oil futures turned positive in volatile trading as escalating tensions between the US and Iran and reports of 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