{"id":64730,"date":"2026-07-13T17:08:16","date_gmt":"2026-07-13T21:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-surges-and-stocks-slide-amid-us-iran-conflict-trump-backs-russia-sanctions\/64730\/"},"modified":"2026-07-13T17:08:16","modified_gmt":"2026-07-13T21:08:16","slug":"oil-surges-and-stocks-slide-amid-us-iran-conflict-trump-backs-russia-sanctions","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/oil-surges-and-stocks-slide-amid-us-iran-conflict-trump-backs-russia-sanctions\/64730\/","title":{"rendered":"Oil Surges and Stocks Slide Amid US-Iran Conflict; Trump Backs Russia Sanctions"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Global energy markets are in turmoil<\/strong> as Brent crude climbed above <strong>$83 a barrel<\/strong> and WTI surged nearly <strong>9%<\/strong> following a major escalation in military strikes between the <strong>U.S. and Iran<\/strong>.<\/li>\n<li><strong>Federal Reserve Governor Christopher Waller<\/strong> signaled that a <strong>July interest rate hike<\/strong> is &quot;on the table&quot; if inflation data remains hot, driving the <strong>U.S. 10-year Treasury yield to 4.61%<\/strong>.<\/li>\n<li><strong>President Donald Trump<\/strong> has officially endorsed a bipartisan <strong>Russia sanctions bill<\/strong>\u2014a legacy project of the late Senator <strong>Lindsey Graham<\/strong>\u2014aimed at forcing the Kremlin to end the war in Ukraine.<\/li>\n<li><strong>Technology stocks led a broad market decline<\/strong>, with the <strong>Nasdaq 100 losing 1.9%<\/strong> as rising energy costs and hawkish Fed comments dampened investor appetite for risk.<\/li>\n<li><strong>AI infrastructure spending remains a massive theme<\/strong> despite the macro volatility, with <strong>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>)<\/strong> announcing a <strong>\u20ac5 billion ($5.7 billion)<\/strong> expansion in Ireland and <strong>Meta (<a href=\"\/stock\/META\">META<\/a>)<\/strong> projecting up to <strong>$145 billion<\/strong> in AI-related capital expenditures this year.<\/li>\n<\/ul>\n<hr>\n<h2>Middle East Conflict Triggers Energy Shock<\/h2>\n<p>Geopolitical tensions reached a breaking point on Monday as the <strong>Iranian Army<\/strong> claimed to have targeted <strong>U.S. military facilities in Kuwait<\/strong> with drones and struck a hostile vessel with cruise missiles. In response, the <strong>U.S. military<\/strong> announced it will begin enforcing a naval blockade on all Iranian ports and oil terminals starting Tuesday. <strong>President Donald Trump<\/strong> further escalated the situation by demanding a <strong>20% tariff<\/strong> on all cargoes transiting the <strong>Strait of Hormuz<\/strong>, a critical chokepoint for 20% of global oil and gas trade.<\/p>\n<p>The market reaction was immediate and severe. <em><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> witnessed one of their largest single-day spikes in recent months<\/em>, with <strong>WTI crude<\/strong> rising nearly <strong>9%<\/strong> to approach <strong>$79 a barrel<\/strong>, while <strong>Brent crude<\/strong> surpassed the <strong>$83<\/strong> mark. Analysts warn that if the Strait of Hormuz remains a site of active conflict, the risk premium on global energy could drive prices significantly higher, further complicating the global inflation outlook.<\/p>\n<h2>Fed Hawks Signal Potential July Rate Hike<\/h2>\n<p>The surge in energy prices has reignited fears that the <strong>Federal Reserve<\/strong> may be forced to keep monetary policy tighter for longer. <strong>Fed Governor Christopher Waller<\/strong> characterized the current economic environment as being at a &quot;crossroads,&quot; stating that &quot;a rate hike should be on the table if this week&#39;s inflation data come in hot.&quot; <em>Money markets quickly repriced expectations<\/em>, now showing a <strong>50% chance<\/strong> of a rate hike at the July meeting.<\/p>\n<p>Investor focus has shifted to the upcoming <strong>CPI and PPI reports<\/strong>, as well as <strong>Fed Chair Kevin Warsh&#39;s<\/strong> upcoming congressional testimony. The <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> (<a href=\"\/stock\/SPY\">SPY<\/a>)<\/strong> fell <strong>0.8%<\/strong>, while the <strong>Nasdaq 100 (<a href=\"\/stock\/QQQ\">QQQ<\/a>)<\/strong> dropped <strong>1.9%<\/strong>, reflecting a sharp rotation out of growth stocks. Government bonds also faced selling pressure, with the <strong>10-year Treasury yield<\/strong> climbing as investors demanded higher returns to compensate for rising inflation risks.<\/p>\n<h2>Trump Backs Graham\u2019s Russia Sanctions Bill<\/h2>\n<p>In a significant shift in foreign policy, <strong>President Donald Trump<\/strong> will support a major bipartisan <strong>Russia sanctions bill<\/strong> originally championed by the late Senator <strong>Lindsey Graham<\/strong>. The legislation, which had been under negotiation for months, aims to ramp up economic pressure on the Kremlin to end its invasion of Ukraine. The move is seen as a tribute to Graham\u2019s career and a signal that the administration is willing to use tougher economic mandates against Moscow.<\/p>\n<p>The proposed bill would authorize the president to levy <strong>high tariffs<\/strong> on imports from nations that continue to purchase Russian oil, <a href=\"https:\/\/stockmarketwatch.com\/metal\/uranium\" data-internallinksmanager029f6b8e52c=\"13\" title=\"Uranium\">uranium<\/a>, and natural gas. <em>Senate Majority Leader John Thune<\/em> confirmed that the White House had been collaborating closely with Graham on the measure before his passing, and the bill is expected to find a clear legislative path in the Senate.<\/p>\n<h2>AI Investment Supercycle Continues Amid Volatility<\/h2>\n<p>Despite the broader market sell-off, the &quot;AI investment supercycle&quot; remains a dominant force. <strong>Intel (<a href=\"\/stock\/INTC\">INTC<\/a>)<\/strong> officially launched a <strong>\u20ac5 billion ($5.7 billion)<\/strong> capital investment to upgrade its campus in <strong>Leixlip, Ireland<\/strong>, aimed at boosting production of its <strong>Intel 3<\/strong> silicon wafers for AI and high-performance computing. This expansion is part of a broader strategy to challenge the manufacturing dominance of <strong>Taiwan Semiconductor Manufacturing Co. (<a href=\"\/stock\/TSM\">TSM<\/a>)<\/strong>.<\/p>\n<p>Meanwhile, <strong>Meta (<a href=\"\/stock\/META\">META<\/a>)<\/strong> is doubling down on its infrastructure, with internal reports suggesting the company could spend as much as <strong>$145 billion<\/strong> on AI infrastructure this year alone. <strong>TSMC (<a href=\"\/stock\/TSM\">TSM<\/a>)<\/strong> also reported strong momentum, with <strong>June sales jumping 68%<\/strong> year-over-year, driven by insatiable demand for advanced AI processors. However, chipmaker shares extended their decline on Monday as the broader tech sell-off overshadowed these individual growth stories.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Global energy markets are in turmoil as Brent crude climbed above $83 a barrel and WTI surged nearly 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