[Stay on top of transportation news: Get TTNews in your inbox.]
Oil Prices on Upswing as Iran War Drags On
Brent Crude Rises 2.7% to $104.40 a Barrel
| Updated:
NEW YORK — Slumping AI stocks and another climb in oil prices because of the Iran war are helping to halt Wall Street’s record-setting rally on April 28.
The S&P 500 slipped 0.7% from its latest all-time high. The Dow Jones Industrial Average, which has less of an emphasis on technology stocks, held up better and was up 101 points, or 0.2%, as of 12:25 p.m. Eastern time, while the Nasdaq composite fell 1.3% from its own record.
Stocks enmeshed in the artificial intelligence industry led the way lower. Nvidia, whose chips are powering much of the AI revolution, sank 2.9% and was the heaviest weight on the S&P 500. Drops of 5.2% for Broadcom and 5.8% for Micron Technology also helped drag the S&P 500 toward what could be its worst day in a month.
The weakness came after a report in The Wall Street Journal said some leaders at OpenAI are concerned about whether it can support its massive spending on data centers after missing targets for new users and revenue.
If the maker of ChatGPT pulls back on its investments, it could bolster criticism that the entire AI industry is in a bubble of over-the-top spending that may not produce the profits and productivity that would make it all worth it.
The drops come just a day before several of the biggest spenders on AI are scheduled to report their latest profits for the start of 2026. They could offer more clues on whether all the investment in AI is producing the kind of returns that shareholders care about. Alphabet, Amazon, Meta Platforms and Microsoft are all reporting their latest quarterly results on April 29.
Image
Also weighing on the stock market was another rise of more than 2.5% for oil prices on continued uncertainty about what will happen with the Iran war.
The price for a barrel of Brent crude oil to be delivered in June climbed 3% to $111.50. Brent to be delivered in July, which is where traders are focusing more in the oil market, rose 2.7% to $104.40.
After sitting around $70 in late February, Brent prices are moving closer to their peak of $119 reached when worries about the war have been at their heights.
The focus is centered on the Strait of Hormuz, which is closed to traffic and keeping oil tankers stuck in the Persian Gulf instead of heading to customers worldwide. The Trump administration seemed unlikely April 28 to accept Iran’s offer to end the war and reopen the Strait of Hormuz if the U.S. lifts its blockade on the country.
The proposal would postpone discussions on the Islamic Republic’s nuclear program, something that U.S. Secretary of State Marco Rubio appeared to rule out in a Fox News interview April 27.
Meanwhile, the average price of for a gallon of gasoline in the United States reached $4.18 on April 28, the most since 2022, according to the auto club AAA.
Expensive fuel was one of the reasons JetBlue Airways reported a worse loss for the start of 2026 than analysts expected.
But its stock nevertheless rose 2.9% after CEO Joanna Geraghty said the airline saw demand from customers strengthening through the quarter. JetBlue meanwhile announced moves it's making to rein in fuel costs, such as cutting some flying.
Also helping to limit Wall Street's losses was Coca-Cola. Its stock rallied 6.3% after it reported stronger profit and revenue for the latest quarter than analysts expected, thanks in part to strength from China, the United States and India.
In the bond market, Treasury yields held relatively steady after a report showed U.S. consumers are feeling slightly more confident in April, when economists expected to see a decline. The yield on the 10-year Treasury rose to 4.36% from 4.35% late Monday.
BREAKING: The national average price of gasoline has reached $4.17/gal, the highest level since 2022, surpassing the $4.16/gal from earlier this month, according to GasBuddy data. We’ll continue to head higher for now. — Patrick De Haan (@GasBuddyGuy) April 28, 2026
On April 29, the Federal Reserve is scheduled to announce its latest decision on short-term interest rates. The widespread expectation is that it will hold the federal funds rate steady and hold off on resuming its cuts. Lower interest rates would help the economy, but they also risk worsening inflation when oil is expensive and tariffs are threatening to push prices higher.
Also April 29, the Senate Banking Committee will vote on whether to confirm President Donald Trump’s nominee, Kevin Warsh, to succeed Fed Chair Jerome Powell. The committee is expected to approve Warsh and send his nomination to the full Senate.
In stock markets abroad, indexes were mixed in Europe and fell in Asia.
Japan’s Nikkei 225 sank 1% for one of the world’s larger losses after the Bank of Japan opted in a split vote to keep its key interest rate unchanged.
“There are various risks to the outlook,” it said in a statement. “For the time being it is necessary to pay particular attention to the impact of the future course of the situation in the Middle East.”
AP Business Writers Yuri Kageyama and Matt Ott contributed to this report.
