Oil Up, Stocks Down as Hormuz Escalates

MPC Markets Morning Call · May 4, 2026 · 11m

The US-Iran conflict intensified overnight as Trump launched “Project Freedom” to escort vessels through Hormuz, triggering Iranian missile fire on US destroyers and a drone strike on the UAE’s Fujairah oil port. US Central Command said it successfully guided two American-flagged ships through the strait while repelling attacks and destroying small boats. The S&P 500 fell 0.4% to 7,201.75 with all 11 sectors except energy in the red, the Dow dropped 1.1% to 48,941.90, and the Nasdaq slipped 0.2% to 25,067.80. Brent crude surged 5.4% to $114.03 while WTI jumped 3.3% to $105.26. Bond yields…