Key Highlights

  • Brent crude oil surged 9.13% to $82.94 on geopolitical tensions in the Strait of Hormuz.
  • KeyBanc downgraded Apple (NASDAQ: AAPL) to Underweight, citing valuation concerns.
  • Mizuho cut Circle Internet Group’s price target from $85 to $40, signaling caution.

Geopolitical tensions in the Strait of Hormuz sent Brent crude oil soaring 9.13% on Monday, triggering a broad market selloff that hit technology stocks hardest.

What Happened

Brent crude closed at $82.94 after jumping 9.13%, its sharpest single-day gain in months, as concerns over supply disruptions in the Strait of Hormuz rattled energy markets. West Texas Intermediate followed, rising 8.79% to $77.69, while natural gas declined 2.18% to $2.87. Analysts at KeyBanc downgraded Apple to Underweight, while Mizuho slashed Circle Internet Group’s price target from $85 to $40.

Market Impact

The surge in oil prices lifted energy stocks but weighed on broader equity indices, with the S&P 500 slipping 0.79% to 7,515. The Russell 2000 small-cap index declined 0.86% to 2,952, reflecting risk aversion. Treasury yields climbed, with the 30-year bond settling at 5.10% and the 10-year note at 4.61%.

Lithium prices, up 75% this year, continued their rally as demand projections point to a fivefold increase by 2040. EnergyX, a lithium producer, announced plans to unlock up to 15 million tons of the metal using advanced extraction methods.

What's Next

Investors will watch for further developments in the Strait of Hormuz, which could sustain upward pressure on oil prices. Analyst calls on Apple and Circle Internet Group may prompt additional volatility in tech stocks. The July 16 deadline for EnergyX’s investment round could draw attention to lithium sector opportunities as demand forecasts remain bullish.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.