Brent Crude Surges to $126 Amid Reports of Potential US Military Action in Iran

Brent crude oil prices spiked above $126 per barrel, reaching levels typically associated with wartime instability. The rally follows reports that US President Donald Trump is receiving briefings on potential military options concerning Iran, triggering immediate concerns over global energy supply security. The surge in energy costs coincides with a period of heightened geopolitical tension, putting pressure on global inflation expectations and transportation costs. Traders are reacting swiftly to the prospect of escalation in the Middle East, which historically leads to significant volatility in the commodities complex. In the equity markets, Nasdaq 100 futures retreated after initial gains. Alphabet shares rose as the company demonstrated a tangible return on its artificial intelligence investments. Conversely, Meta experienced a sell-off after announcing an increase in capital expenditures, highlighting investor sensitivity to the costs of AI scaling. The Federal Reserve maintained current interest rates, though the decision was notably contentious. Four policymakers dissented in the vote, signaling a growing divide within the central bank regarding the future path of monetary policy. Markets now pivot toward upcoming earnings from Apple for further direction.