Finance

Global oil prices rallied as doubts mounted over a potential diplomatic resolution to reopen the Strait of Hormuz. International benchmark Brent crude futures gained to settle near $87 a barrel following rigorous demands outlined by Tehran for lifting the blockade. The ongoing friction has heightened supply concerns, injecting renewed inflationary fears into broader financial markets.

Technology and semiconductor shares faced notable headwinds, significantly weighing on the major stock averages. Intel fell approximately 4% after announcing plans to launch a $15 billion common stock offering aimed at financing artificial intelligence infrastructure investments. Other major tech anchors, including Nvidia and Apple, also closed the session lower.

The yield on the 10-year U.S. Treasury note climbed to roughly 4.71% as investors positioned themselves ahead of July inflation statistics. Market expectations for a Federal Reserve interest rate hike at the upcoming September meeting have fluctuated following an unexpected contraction in the July payrolls report. Traders are looking toward the consumer price index to clarify the central bank's next policy trajectory.