On Tuesday, after the U.S. Treasury Department revoked exemptions allowing the sale of Iranian oil, markets grew concerned that high energy prices would prompt the Federal Reserve to raise interest rates.The U.S. Dollar Index climbed back above 101, ultimately closing up 0.22% at 101.09; the benchmark 10-year Treasury yield closed at 4.556%, while the 2-year Treasury yield—which is sensitive to the Fed’s policy rate—closed at 4.197%.
Spot gold rose before retreating, ultimately closing down 1.43% at $4,105.70 per ounce; spot silver fell below $60, closing down 3.3% at $59.98 per ounce.
International oil prices rose after the U.S. reinstated sanctions on Iranian oil following allegations that Iran attacked a liquefied natural gas (LNG) tanker from Qatar near the Strait of Hormuz, and U.S. military strikes targeted multiple locations in southern Iran.WTI crude oil closed up 5.01% at $72.38 per barrel; Brent crude oil closed up 5.4% at $75.81 per barrel.
The Dow Jones Industrial Average closed down 0.25%,the S&P 500 fell 0.45%, and the Nasdaq fell 1.16%. Memory chip stocks continued to decline, with SanDisk (SNDK.O) down 7%, Western Digital (WDC.O) down nearly 8%, and Micron Technology (MU.O) down 4.7%.SpaceX (SPCX.O) fell nearly 7%. The Nasdaq Golden Dragon China Index closed down 0.57%, with iQIYI (IQ.O) falling nearly 7%.