With $100 Oil Expected, The S&P 500 Turns Positive Pre-Market | GSPC

"WTI crude is currently just shy of $94 a barrel, with brent at $99, just a hair away from $100. The move was driven by the effective closure of the Strait of Hormuz. The move has been swift and severe, with energy ETFs like USO surging nearly 10% in a single session."

"The driver is the U.S.-Israeli military campaign against Iran, which has effectively closed the Strait of Hormuz since late February. Defense Secretary Pete Hegseth confirmed the strait remains open for transit only in principle, with Iranian military actions blocking shipping flow. The International Energy Agency called this the biggest disruption to global energy markets ever."

"Despite energy strength, the rest of the market has been under real pressure. The S&P 500 has lost 2.33% year-to-date, and small caps have been hit even harder - the Russell 2000 is down 7.04% in the same period - as rising oil costs and rate fears disproportionately squeeze economically sensitive companies."

S&P 500 futures point to a modest 0.37% gain following Thursday's 1.52% decline, with market sentiment complicated by surging oil prices. WTI crude approaches $94 per barrel while Brent nears $100, driven by effective closure of the Strait of Hormuz due to U.S.-Israeli military operations against Iran. The International Energy Agency calls this the biggest disruption to global energy markets ever. Energy stocks and producers like Devon Energy and Dow Inc. surge significantly. However, the broader market struggles as rising oil costs and rate concerns disproportionately pressure economically sensitive sectors including industrials and consumer names. The S&P 500 is down 2.33% year-to-date, while the Russell 2000 has declined 7.04% over the past month.

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