Escalating US-Iran tensions have rattled global markets, sending oil prices sharply higher while gold slid to a two-week low. In corporate news, Apple's leadership transition officially began as John Ternus assumed the role of chief executive, succeeding Tim Cook.
US strikes on Iran renew supply fears
The United States launched a fresh wave of strikes against Iranian targets on Tuesday, marking a significant escalation after a period of relative calm. US Central Command said the strikes targeted Islamic Revolutionary Guard Corps positions in response to attacks on commercial shipping in the Strait of Hormuz and on US forces in the region.
Reports indicate that two oil supertankers attempting to leave the strait were hit by projectiles, heightening concerns about the security of a waterway that handles a substantial portion of global oil shipments. The US had previously targeted Iranian rocket launchers preparing to lay mines, and Iran retaliated with attacks on the UAE and Jordan.
The renewed hostilities have revived worries about energy supply disruptions. Oil shipments through the strait had recovered to about half of pre-war levels during the lull, but a return to full-scale conflict could drive energy costs and inflation higher, adding uncertainty for investors worldwide.
Apple's new CEO takes charge
Apple's stock rose approximately 3% on Tuesday as John Ternus formally became CEO, marking the company's first leadership change since 2011. Ternus, a 25-year Apple veteran, previously led hardware engineering for products like the iPhone, Mac, and iPad. Tim Cook, who succeeded Steve Jobs, moves to the role of executive chairman.
During Cook's tenure, Apple's market value grew from roughly $350 billion to over $4.5 trillion. Investors appear to view the transition as orderly, but Ternus faces challenges including competition in artificial intelligence and maintaining product momentum. Analysts are watching how he navigates these areas, with some seeing potential in a foldable iPhone and AI strategy shifts. For more on these dynamics, see Apple's new CEO faces AI test and Apple's AI strategy shift could unlock upside.
Gold drops as yields rise
Gold prices fell more than 2% on Tuesday, hitting a two-week low as higher Treasury yields and a stronger dollar weighed on the metal. Spot gold declined 2.7% to $4,326.99 an ounce, while US gold futures settled 2.34% lower at $4,376.50. The drop below its 200-day moving average, around $4,528, added technical selling pressure.
Treasury yields climbed to their highest level since January 2025, driven by inflation concerns from the Middle East tensions. Higher yields increase the opportunity cost of holding non-yielding assets like gold, and a stronger dollar makes bullion more expensive for foreign buyers. Investors are now focused on upcoming US employment data, including the ADP report and nonfarm payrolls, for clues on Federal Reserve policy.
Oil prices jump over 5%
Oil prices surged about 5% on Tuesday as the US-Iran conflict intensified. Brent futures rose 5.11% to $95.10 a barrel, while West Texas Intermediate gained 5.62% to $90.54, both on track for their strongest closes in weeks. The attacks followed the first direct exchange of strikes between the US and Iran since July, along with reports of tanker attacks near the Strait of Hormuz.
Iran has warned it could block oil exports from the Gulf, adding to supply uncertainty. The market is also dealing with refining disruptions, as US diesel prices hit a 52-month high after rising 51% over the past 10 weeks. The diesel crack spread, a measure of refining margins, reached a record near $106 a barrel.
Investors are awaiting weekly US oil inventory data, with analysts expecting a drawdown of about 0.8 million barrels for the week ended August 28, which would be the first decline in five weeks. For broader market context, see Alphabet's bond sale and oil surge.
This article is for informational purposes only and does not constitute financial advice.
