Crude Oil Spikes to $106 on Hormuz Blockade Woes

US stocks closed lower on Thursday, retreating from recent record highs as investors weighed mixed quarterly earnings, fading hopes for a swift diplomatic resolution in Iran, and inflationary pressures. The Dow, S&P 500, and Nasdaq all declined, with tech shares underperforming and defensive sectors gaining.

The Nasdaq Composite led the declines, down 0.89%, while the S&P 500 and the Dow fell approximately 0.4% each. Market sentiment was dampened by disappointing quarterly results and tempered guidance from key industry players, including ServiceNow and IBM.

The retreat followed stalled US-Iran peace negotiations, even as 81% of the 87 S&P 500 companies reporting so far beat earnings estimates.

Sentiment improved on Thursday evening, as investors reacted to the Israel-Lebanon ceasefire extension.

Intel shares surged more than 20% in extended trading after the chipmaker reported better-than-expected first-quarter earnings. The upbeat performance was driven by robust demand for data centre processors and artificial intelligence-related workloads, which have become a key growth driver for the company.

Uncertainty surrounding the ongoing conflict with Iran and a continued naval blockade of the Strait of Hormuz have pushed Brent crude oil prices toward $106 per barrel.

These rising energy costs have fueled inflationary concerns, leading to higher U.S. Treasury yields across maturities. The benchmark 10-year yield recently traded near 4.3% as investors assessed the potential for sustained high interest rates.

Recent economic data indicate a cooling labour market, with weekly jobless claims climbing to 214,000, exceeding previous expectations. Many firms are reportedly holding headcounts steady or only hiring to replace departing workers, a shift from the aggressive hiring seen in prior periods. This trend, combined with sticky inflation, is complicating the Federal Reserve’s path for future interest rate decisions.

Driven by surging hedging demand and a flight to safe-haven assets, the Indian rupee weakened for a fourth straight day, depreciating 32 paise against the dollar to hit its lowest level this April.

Nifty has now entered the gap zone between 24,145 and 23,907, formed on 15 April 2026, which may act as short-term support. On the upside, 24,310 and 24,600 are likely to act as resistance levels.

Indian markets are likely to open marginally higher amid strong NASDAQ futures cues.