The Guardian
·Jul 2026
US stock markets fall amid Iran strikes and potential higher interest rates
US stock markets declined as continued US strikes on Iran and comments by Donald Trump at a Nato summit pushed oil prices sharply higher. Brent crude rose more than 5% while the Dow fell about 1.09%, the S&P 500 slipped slightly, and the Nasdaq gained marginally. Global markets also dropped. The IMF reduced its global growth forecast, citing Middle East conflict and increased AI-related spending. US fuel prices rose, with gas averaging $3.79 per gallon and diesel futures increasing following a Russian export ban. US inflation reached 4.2%, and Federal Reserve minutes indicated little support for near-term rate cuts, with some officials suggesting rates may need to rise further, posing challenges for Fed chair Kevin Warsh amid Trump’s pressure to lower rates.