Global crude oil prices fell 3.9% to $96.78 per barrel on Wall Street, breaking a four-day winning streak as Middle East supply disruption fears eased slightly.
Financial markets experienced a volatile end to the week as falling energy costs intersected with escalating geopolitical tensions and fresh U.S. trade tariffs. On Wall Street, stocks drifted to a mixed finish on Friday while Brent crude slipped for the first time in a week. The broader market faced sustained pressure from ongoing military conflict in the Middle East, new administrative tariffs, and stubborn inflation that continues to weigh on consumer spending.
Crude Oil Pulls Back From Weekly Highs Amid Middle East Strains
Brent crude, the international standard, fell 3.9% to close at $96.78 per barrel. The commodity had risen steadily over the first four days of the week, surging back above $100 on Thursday before the late-week retreat. Prior to the outbreak of the war in Iran in late February, international crude traded around $72 per barrel.
Heavy fighting throughout the region has continuously threatened maritime energy transport, raising persistent concerns on Wall Street about global supply flows. Analysts note that key buffers protecting the energy market earlier in the year, including U.S. strategic reserves, have diminished significantly.
Theodore Bunzel, head of geopolitical advisory at Lazard, wrote in a report that if the escalation continues and the Strait of Hormuz remains closed, the impact will hit an energy market with significantly less resilience than it had in the spring.
Nationally, gasoline costs averaged $4.10 per gallon according to AAA, remaining almost a dollar higher than during the same period last year.
Wall Street Indices Diverge as Technology Shares Slide
Equity performance fractured across major indexes on Friday. The S&P 500 barely budged, rising 3.68 points, or less than 0.1%, to 7,411.98 to notch its second consecutive losing week—a pattern not seen since March. The Dow Jones Industrial Average rose 235.60 points, or 0.5%, to finish at 51,947.25.
Conversely, the Nasdaq fell 161.87 points, or 0.6%, to 24,975.82, dragged down by sharp losses from several big tech stocks. Micron Technology fell 7% and Broadcom fell 2.7%. Investor skepticism surrounding heavy corporate expenditures on artificial intelligence technology added further drag to tech valuations, with investors increasingly questioning whether investments by companies like Alphabet and Nvidia will produce profits to justify large stock values.
Meanwhile, bond yields offered some relief to equities. The yield on the benchmark 10-year Treasury fell to 4.68% from 4.71% late Thursday, easing borrowing cost pressures across the broader economy.
Gold Prices Fall for a Third Consecutive Session in Global Markets
Precious metals mirrored the turbulence in energy and equities. Gold prices declined for the third straight day on July 9, following a fall on July 8, marking the third consecutive day of decline. Compared with July 8, 24K gold fell by ₹213 per gram, 22K gold dropped by ₹195, and 18K gold declined by ₹159. Over the three-day period from July 7 to July 9, 24K gold fell by ₹349 per gram, 22K gold fell by ₹320, and 18K gold fell by ₹262 per gram.
The downward correction followed statements from U.S. President Donald Trump declaring that an interim peace arrangement with Iran was “over.” While gold traditionally serves as a safe-haven asset during wars, geopolitical conflicts, and periods of economic uncertainty, surging oil prices overshadowed that safe-haven demand by stoking fears of persistent inflation and tighter monetary policy from the Federal Reserve. Higher interest rates typically reduce the appeal of gold because it does not offer any interest, while expectations of tighter monetary policy also tend to strengthen the U.S. dollar, making gold more expensive for buyers using other currencies.
As the Federal Reserve prepares to convene for its upcoming policy meeting next week, Wall Street has leaned more toward a potential rate increase, with a nearly 38% chance that could happen at the upcoming meeting according to CME FedWatch, as the central bank monitors prices to help cool inflation.
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