Iran is finalizing a shipping lane agreement with Oman in the Strait of Hormuz while global markets monitor rising oil prices and upcoming U.S. inflation data.

Key Points

• Brent crude rose 0.9% to $84.32 per barrel as shipping activity through the Strait of Hormuz remains restricted.
• U.S. consumer price index data scheduled for Wednesday is expected to show a 0.1% headline increase.
• S&P 500 companies reported a 30% year-over-year earnings per share growth, with AI-related stocks significantly outperforming non-AI sectors.
• Market expectations for a Federal Reserve interest rate hike in September have declined to 44% from 67% last week.
• Upcoming corporate earnings reports include results from Applied Materials, Cisco, and CoreWeave.

Why it Matters

Rising fuel costs and potential inflation surprises could influence Federal Reserve policy decisions regarding interest rates. Investors are closely watching these economic indicators alongside strong corporate earnings to gauge the sustainability of recent market rallies.