US stock market remains calm, even as oil prices rise

NEW YORK (AP) — The U.S. stock market remained calm Wednesday, even as the price of oil got back to rising.

The S&P 500 edged down 0.1% for a second day of modest moves following what had been a wild stretch caused by the war with Iran. The Dow Jones Industrial Average dropped 289 points, or 0.6%, and the Nasdaq composite rose 0.1%.

Since the start of the war, sharp moves for oil prices have triggered swings up and down for financial markets worldwide, sometimes by the hour. Oil prices briefly spiked to their highest levels since 2022 this week because of the possibility that production in the Middle East could be blocked for a long time, which in turn raised worries about a surge of debilitating inflation for the global economy.

The International Energy Agency said Wednesday that its members will release a record amount of oil, 400 million barrels, from stockpiles they’ve set aside for emergencies. Such moves push downward on oil prices in the near term, but it will likely require a full resumption of the flow of oil and natural gas from the Persian Gulf area to fully ease the market. That has investors worldwide anxiously awaiting the end of the war.

The price for a barrel of Brent crude, the international standard, rose 4.8% to settle at $91.98. A barrel of benchmark U.S. crude gained 4.6% to $87.25.

Worries are centered on the Strait of Hormuz, a narrow waterway off Iran’s coast where a fifth of the world’s oil sails on a typical day. The war has halted most of that traffic, which means storage tanks for crude in the region are filling up because the oil has nowhere else to go. That in turn is pushing oil producers to say they’re cutting their output.

The United States said it took out more than a dozen minelaying Iranian vessels Tuesday, and the Islamic Republic vowed to block the region’s oil exports, saying it would not allow “even a single liter” to be shipped to its enemies.

All this is happening at a time when inflation was already relatively high in the United States. A report released Wednesday showed that U.S. consumers paid prices for groceries, gasoline and other costs of living that were 2.4% higher in February than a year earlier.

To be sure, that inflation rate was the same as the prior month’s and better than the 2.5% that economists expected, but it remains above the 2% target the Federal Reserve has set for the economy. It also doesn’t include the spike in gasoline prices that’s happened this month because of the war.

“Looking forward, we expect a spring bulge in inflation due to the spike in energy prices tied to the Iran war, the duration of which will dictate the landing spot for headline inflation by year end,” according to Gary Schlossberg, global strategist at Wells Fargo Investment Institute.

High inflation combined with a stagnating economy would create a worst-case scenario called “stagflation” that the Federal Reserve has no good tools to fix. Stagflation fears are rising not just because of higher oil prices but also because of weakness in hiring by U.S. employers.

On Wall Street, the majority of stocks fell. Campbell’s sank 7.1% after the soup company reported a weaker profit for the latest quarter than analysts expected. It was hurt by struggles for its snack business, and it cut its forecasts for revenue and profit this fiscal year.

Helping to limit Wall Street’s losses was Oracle, which jumped 9.2%. The tech giant reported stronger profit and revenue for the latest quarter than analysts expected. It also raised its forecast for revenue growth next fiscal year, in part because of demand for cloud computing for artificial-intelligence training and inferencing.

All told, the S&P 500 fell 5.68 points to 6,775.80. The Dow Jones Industrial Average dropped 289.24 to 47,417.27, and the Nasdaq composite rose 19.03 to 22,716.13.

In stock markets abroad, indexes fell in Europe following better performances in Asia. Germany’s DAX lost 1.4%, while Japan’s Nikkei 225 rose 1.4%.

In the bond market, Treasury yields rose because of the upward pressure from higher oil prices. The yield on the 10-year Treasury climbed to 4.22% from 4.15% late Tuesday, a notable move for the bond market. Higher yields crank up the pressure on other investments, pushing downward on their prices.

Because of the spike for oil prices, traders have pushed back forecasts for when the Fed could resume its cuts to interest rates. President Donald Trump has been angrily calling for such cuts, which would give the economy and job market a boost but also potentially worsen inflation.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

Traders work on the floor at the New York Stock Exchange in New York, Tuesday, March 10, 2026. (AP Photo/Seth Wenig)

Gennaro Saporito works on the floor at the New York Stock Exchange in New York, Friday, March 6, 2026. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Friday, March 6, 2026. (AP Photo/Seth Wenig)

Federico DeMarco works on the floor at the New York Stock Exchange in New York, Tuesday, March 10, 2026. (AP Photo/Seth Wenig)

Drew Cohen works on the floor at the New York Stock Exchange in New York, Tuesday, March 10, 2026. (AP Photo/Seth Wenig)

Traders work on the floor at the New York Stock Exchange in New York, Tuesday, March 10, 2026. (AP Photo/Seth Wenig)

Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, March 10, 2026. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), rear center, and the foreign exchange rate between U.S. dollar and South Korean won, rear left, at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Tuesday, March 10, 2026. (AP Photo/Ahn Young-joon)

DUBAI, United Arab Emirates (AP) — The United States is warning shipping companies that they could face sanctions for making payments to Iran to safely pass through the Strait of Hormuz.

The alert posted Friday by the U.S. Office of Foreign Assets Control adds another layer of pressure in the standoff between the U.S. and Iran over control of the Strait of Hormuz.

About a fifth of the world's trade in oil and natural gas typically passes through the strait at the mouth of the Persian Gulf in peacetime.

Iran effectively closed the strait to normal traffic by attacking and threatening to attack ships after the U.S. and Israel launched a war on Feb. 28. It later began offering some ships safe passage by detouring them through alternate routes closer to its shoreline, charging fees at times for the service.

That “tollbooth” effort is the focus of the U.S. sanctions warning.

The payment demands could include transfers not only in cash but also “digital assets, offsets, informal swaps, or other in-kind payments,” including charitable donations and payments at Iranian embassies, OFAC said.

“OFAC is issuing this alert to warn U.S. and non-U.S. persons about the sanctions risks of making these payments to, or soliciting guarantees from, the Iranian regime for safe passage. These risks exist regardless of payment method,” it said.

The U.S. responded to Iran's closure of the strait with a naval blockade of its own on April 13, preventing any Iranian tankers from leaving and depriving Iran of oil revenue it needs to shore up its ailing economy.

The U.S. Central Command said 45 commercial ships have been told to turn around since the blockade began.

The warning came as U.S. President Donald Trump swiftly rejected Iran’s latest proposal to end the war between the countries.

“They want to make a deal, I’m not satisfied with it, so we’ll see what happens,” Trump said Friday at the White House. He didn't elaborate on what he saw as its shortcomings but expressed frustration with the Iranian leadership.

“It’s a very disjointed leadership,” Trump said. “They all want to make a deal, but they’re all messed up.”

Iran’s state-run IRNA news agency reported Iran handed over its plan to mediators in Pakistan on Thursday night.

The shaky three-week ceasefire between the U.S. and Iran appears to be holding, though both countries have traded accusations of violations. The standoff is increasingly putting pressure on the global economy, driving up prices and leading to shortages of fuel and other products tied to the oil industry.

Negotiations continued by phone after Trump called off his envoys’ trip to Pakistan last week, the president said. Trump this week floated a new plan to reopen the critical passageway used by America’s Gulf allies to export their oil and gas.

Iranian Foreign Minister Abbas Araghchi has briefed many of his regional counterparts on the country's initiatives to end the war, according to his social media. He also held talks Friday with European Union foreign policy chief Kaja Kallas, who is in contact with the EU’s Gulf partners.

Iran on Saturday said it hanged two men convicted of spying for Israel.

The Iranian judiciary's news outlet, Mizanonline, identified the men as Yaghoub Karimpour and Nasser Bekrzadeh. It said they were hanged after the country’s Supreme Court upheld earlier death sentences.

The news outlet said Karimpour was accused of sending “sensitive information” to an officer in Israel's Mossad intelligence agency, while Bekrzadeh was alleged to have sent details about government and religious leaders as well as information about Natanz. The central Iranian city is home to a nuclear enrichment facility bombed by Israel and the U.S. last year.

Iran has hanged more than a dozen people over alleged espionage and terrorist activities in recent weeks.

Fu Cong, the Chinese ambassador to the United Nations, said Friday that maintaining the ceasefire is “the most urgent issue,” as well as bringing together the sides to resume good faith negotiations “to make sure that the ground is laid for reopening of Hormuz.”

Foreign Minister Wang Yi “has been on the phone almost constantly” with representatives from all sides, Fu said, adding that China supports Pakistan’s efforts to mediate between the parties.

Fu stressed the root cause of the tremendous suffering in Iran and neighboring countries and the growing turmoil in the global economy, especially in developing countries, “is the illegitimate war by the U.S. and Israel.”

Associated Press writers Collin Binkley in Washington, Nasser Karimi in Tehran and Edith Lederer at the U.N. contributed to this report

A tanker, left, and a car carrier are anchored at sea in the Gulf of Oman near the Strait of Hormuz, as seen from the coast near Khor Fakkan, United Arab Emirates, Friday, May 1, 2026.(AP Photo/Fatima Shbair)

Cargo ships are seen at sea near the Strait of Hormuz, as viewed from a rocky shoreline near Khor Fakkan, United Arab Emirates, Friday, May 1, 2026. (AP Photo/Fatima Shbair)

Men gather along the shore, some crouching and watching a game, as a mix of bulk carriers, cargo ships, and service vessels line the horizon in the Strait of Hormuz off Bandar Abbas, Iran, Monday, April 27, 2026.(Razieh Poudat/ISNA via AP)

A man stands in the water, appearing to fish, as bulk carriers, cargo ships, and service vessels line the horizon in the Strait of Hormuz off Bandar Abbas, Iran, Monday, April 27, 2026.(Razieh Poudat/ISNA via AP)

An Emirati patrol boat, left, is near a tanker anchored in the Gulf of Oman near the Strait of Hormuz, as seen from a coastal road near Khor Fakkan, United Arab Emirates, Friday, May 1, 2026. (AP Photo/Fatima Shbair)