Stocks drop and oil rises as Hormuz hopes fade

395 points by marketrent 9 hours ago on reddit | 39 comments

bubblegum-rose | 8 hours ago

It seems like the opposite has been happening this morning?

Why the hell are headlines all over the place right now? And why are completely unverified headlines swaying the markets so much? Is everyone really that on edge for a crash?

BigBoyYuyuh | 8 hours ago

Markets etc…are all ran by bots and algorithms. They see headlines that there’s a deal so they buy/sell accordingly. They see there isn’t a deal so they buy/sell.

Nobody behind the wheel anymore, that’s why nothing makes sense. Vibe economy.

Twister50v8 | 8 hours ago

this whole thread is not worthy of the subreddit, but I'll bite while we await deletion.

NYSE has always been built on vibes. The people who pull exceptionally well with small funds are people who understand economics at a deeper level than they could ever explain. They understand feelings. Whether or not AMD rises to $1,000/share before CY end is not based on the P/E ratio or revenue generated. That is called technical analysis and only works to provide context to bigger ideas.

What matters are the vibes, baby! Lisa Su getting on the mic and calling out how she told everyone this would be happening for years now is a vibe! Total quiet confidence while shattering glass ceiling after glass ceiling is a freaking vibe. That stock will hit some crazy 52wk highs before December ends, and will do so independent from any sales or market share changes.

Recognizing vibes is a key element for liquidity deployment in the market, and time in market will always outperform timing the market, so when I purchased Walmart for $100 recently, I am not concerned with it making me money. Walmart is a vibe for poor people and working class people who think they are good at saving money. Walmart will go up even as the unemployment rate increases alongside CPI results.

MrD3a7h | an hour ago

We've outsourced our vibes to vibe-coded bots.

ReturnOfBigChungus | 8 hours ago

Headlines may be all over the place but the actual price of oil is down like 15% in the last week. Make of that what you will.

bubblegum-rose | 8 hours ago

I know, I’m an idiot

I even KNEW the spot price of oil went down last week and I was still enough of a simpleton to buy calls

Twister50v8 | 8 hours ago

what is your lifetime annualized return for your portfolio if you don't mind me asking? I like to pick the brains of people who trade options.

My 10yr account I opened mostly to gamble to keep me away from actual casinos has built itself up to 32% annualized returns and the only rule I made for myself is that whatever I choose to purchase, I'm not allowed to sell for 5 years (fuck you Cathy Wood). I have never traded options in that account.

Snoo_81545 | 6 hours ago

Oil exports out of MENA are now 94% of prewar level due to the strategy of US escorts in the Strait of Hormuz per Gregory Brew posting Kpler data from a new dashboard they created. Fairly trustworthy sources.

Iran has been hitting quite a few tankers lately but the strategy of "just go for it, and we'll intercept incoming missiles and drones" is currently fairly effective.

I'm sure people are considering how long the US can keep that up for. It isn't inexpensive nor long term sustainable for us to utilize the US Navy in that capacity. There's also the question about escalation from Iran as they continue to rebuild missile and drone capacity from the US strikes earlier in the war. Still, short term, oil is flowing and that seems to be what the markets are reacting to.

I think that is the crux of the conflicting information flying around. It's really a matter of what timescale you are looking at this conflict in. Things do seem a really long way away from a long term sustainable peace deal, but short term the US has found an effective strategy.

Bodoblock | 6 hours ago

One morning I was looking at the front page of the WSJ. I forget the exact details of the lead story, but it was something like tech-related jitters depressing stock prices that day. It was this whole thing about how tech was making people nervous and was hurting prices.

A few hours later, the S&P was actually meaningfully up. The front page headline changed. Tech wasn't making people nervous! It was actually rallying the market! Tech was great!

Which is all to say, all this shit is just made up lol. No one knows why the market does anything. They'll probably update the headline/story in an hour or two.

Just_Candle_315 | 8 hours ago

Thats what happens when algorithms write the news articles

Constant-Plant-9378 | 7 hours ago

Trump's only job here is to continuously fuck with the global oil market so his handlers can continue to rake in billions off the volatility and inflation.

It doesn't cost any more to pump crude out of the ground in Texas. These fuckers are profiting from this and they are paying Trump and his cronies to keep this up.

This will not improve until they are all removed from power.

I hope all you dumb-fuck three-time Trump voters enjoy spending $250/week filling up your $80K truck you can't afford payments on anymore.

Resident_Window_9369 | 8 hours ago

Huh. Oil is down. Stocks are flying. Seems like everyone is reporting bullshit opposite things. This is the problem in society now. What’s real and what is fake. More fake news than real news

Moist1981 | 8 hours ago

The article is reportedly from 9:27 this morning. And at that time Brent was up at about $108. It has since fallen to $103 but at the time of writing the article was correct.

ShortNefariousness2 | 8 hours ago

It's 90 when it should be 70. The Iran war needs to end for that to happen.

Resident_Window_9369 | 7 hours ago

So you have assigned a $20 premium just to this war? So inflation is transitory then for sure.

[OP] marketrent | an hour ago

>Resident_Window_9369 Huh. Oil is down. Stocks are flying. Seems like everyone is reporting bullshit opposite things. This is the problem in society now. What’s real and what is fake. More fake news than real news

Cf. CNBC Sept 29 2026 article updated 4:20 PM EDT:

>Stocks fell on Tuesday following another rise in Treasury yield to fresh multiyear highs. > >The Dow Jones Industrial Average pulled back 131.59 points, or 0.26%, to close at 51,349.92. The S&P 500 edged down 0.16% to end at 7,670.84, while the Nasdaq Composite slipped 0.09% to 26,797.54. Though all three indexes ended the session off their lows, they also posted back-to-back losing sessions.

Resident_Window_9369 | an hour ago

Again, huh? Oil was down and tech stocks were up.

[OP] marketrent | an hour ago

>Resident_Window_9369 Again, huh? Oil was down and tech stocks were up.

FT: The price of the global oil benchmark Brent crude has been more than $100 a barrel for much of September, falling back slightly to about $104 a barrel on Tuesday.

CNBC: Mega-cap technology companies carry an outsized weight in the benchmark, meaning a strong performance from a small number of stocks can drive the index even when many others are moving the other way.

Resident_Window_9369 | an hour ago

Huh???? markets are very strong and have been for many years. Any pullback has been aggressively bought.

spaceaige | 5 hours ago

I like how iran gave the orange pedophile hope that they are desperate. Even better is that he walked right into it. You deserve this America. This is your country on a pedophile with concepts of a plan.

Last_Surprise981 | 3 hours ago

Iran is also likely looking for a way out. The longer this oil shock goes on the more money gets pumped into other energy sources.

spaceaige | 3 hours ago

They’ve been under sanctions for decades. They are laughing at what dumfk America put in office for a second time.

Last_Surprise981 | 3 hours ago

Sanctions won't matter if global oil demand overall gets decreased. For a petrostate that's crippling.

spaceaige | 3 hours ago

Good thing the alpha pedo with a concept of a plan just reduced CAFE standards. Also, India will import plenty of oil.

Last_Surprise981 | 3 hours ago

And? Next president will just flip it back, think in decades, in two decades how many more oil sites will be up in running in LATAM and West Africa, how many more solar and wind farms, how many more nuclear plants?

spaceaige | 3 hours ago

America is finished. Lol

[OP] marketrent | 9 hours ago

Agence France-Presse article excerpts:

Asian stocks mostly fell and oil prices extended gains Tuesday as hopes for a reopening of the Strait of Hormuz fade amid expectations the Federal Reserve will hike interest rates again next month.

Hopes for an easing of Middle East tensions were dashed at the weekend when Donald Trump rejected Iran's offer for a seven-day truce. While he said talks would resume this week, that was unable to lift the gloom on market floors, with traders contemplating further rises in inflation that will force the Fed to tighten monetary policy more.

The US president on Monday denied a report by the news outlet Axios that he offered Iran sanctions relief and the release of frozen funds, as the Middle East war drags on.

"Axios just released a story that 'Trump' offered Sanctions Relief and Frozen Funds to Iran. This is untrue. I offered them NOTHING!," Trump said on his Truth Social platform.

The story said Trump "is willing to give Iran sanctions relief and release Iranian frozen funds in return for concrete Iranian steps regarding the nuclear program", quoting unnamed US officials. The 80-year-old Republican called the story "a HOAX" and said the news site should withdraw it.

 

But Iran's state broadcaster said the country's Foreign Minister, Abbas Araghchi, will meet Qatari representatives. The talks are expected to focus on "messages exchanged with the United States through intermediaries... particularly regarding the conditions set by Iran for the reopening of the Strait of Hormuz".

However, Tehran officials have privately expressed pessimism about making a deal to reopen Hormuz before November's US midterm elections, Bloomberg reported sources as saying.

The waterway is key to the world's oil and gas deliveries and is now central to the conflict between the US and Iran, particularly with the Iran-backed Houthis seizing Yemen's entire Red Sea coast, including the Bab al-Mandab Strait, another vital shipping lane.

"Our expectations remain that the conflict will be with markets for the foreseeable future and the global economy will continue adjusting to the realities of the supply disruptions," said Ian Lyngen at BMO Capital Markets.

 

Both main crude contracts rose more than one percent Tuesday, and the lack of any progress in ending the conflict continues to put upward pressure on fuel costs.

Average UK diesel prices have hit a record high, according to the RAC motoring organisation.

Equity markets struggled following a day in the red for all three main indexes on Wall Street.

Tokyo, Seoul, Hong Kong, Mumbai, Singapore, Taipei, Wellington, Jakarta and Manila were all down, but Shanghai and Sydney rose. London, Paris and Frankfurt opened higher.

Gold held Monday's steep losses to sit around $4,140 as traders bet on more rate hikes, which makes the non-interest-bearing metal less attractive.

Investors are also gearing up for the release of key US inflation and jobs data this week that could play a role in the Fed's decision-making, with markets pricing in a second successive rate hike at the end of October.

HappilyDisengaged | 7 hours ago

There’s a sailing term for an ocean state after a storm it’s called Confused Seas. Waves and currents in different directions. No flow or steady movement. Can make for some angst and tough going if a wave takes you on the beam and by surprise.

That’s how the markets feel right now. We’re in a confused sea state. Nobody knows what to make of headlines and all the lies out of Washington. Generally though, we know the cycle of the ocean/markets. No need to worry about a temporary sea state if your destination is far off and we’re just traveling through

Twister50v8 | 8 hours ago

mods, can we please work on purging articles like this? This is representation of poor content which fuels the fire of political cross commenting. Stocks rising on any given day is irrelevant to the world of economics. We should know this; econ cares about trends, not ticker prices.

Do you need support moderating? Direct me on how to apply. I have a degree in economics with over a decade in the corporate world and find myself quite bored at home now that I don't do the daily grind. Let me know.

worldfundvc | 8 hours ago

Those who are investing in renewables and energy sovereignty today will reduce their geopolitical dependence and not be captive consumers in the future.