Brent falls below US$75 as Nasdaq drops for 3rd straight day

World

A market analyst said “the carnage continues in oil prices” as crude prices continued to fall.

25 Jun 2026 05:20AM

NEW YORK: Oil prices retreated Wednesday (Jun 24) to their lowest levels since the start of US-Iran war while tech shares continued to show weakness on a mixed day for global stocks.

Brent crude dropped below US$75 a barrel for the first time since the start of the Middle East war at the end of February as more tankers returned to the Strait of Hormuz following the US-Iran agreement.

"The carnage continues in oil prices," said Chris Beauchamp, chief market analyst at online trading platform IG.

"This delivers relief for consumers around the globe, assuming the oil industry can scramble to fill the gap left by months of disruption," he added.

As of 3pm GMT (11pm, Singapore time) on Wednesday, maritime tracking firm Kpler recorded 25 transits by commodity ships on Tuesday, and 17 so far on Wednesday.

In peacetime, around 120 ships normally pass through the Strait of Hormuz each day, carrying about a fifth of global oil and LNG gas exports.

US Secretary of State Marco Rubio said the US was committed to preserving the pre-war status quo of toll-free navigation in the Strait of Hormuz, which carries a substantial proportion of global oil and gas shipments.

Iran, however, has repeatedly said it intends to retain control over the strait, along with Oman, and charge what it calls maritime service fees for crossing it.

Back on Wall Street, the Nasdaq finished lower for a third straight session after initially bouncing following Tuesday's more than two per cent drop as markets fret over lofty valuations of semiconductor companies and others associated with the artificial intelligence boom.

"Investors are continuing to question AI valuations," said Jack Ablin of Cresset Capital, who described this week's weakness as indicative of a rotation from tech to other sectors that have underperformed.

The Dow index rose 0.4 per cent.

In Asia, Seoul's Kospi index added more than three per cent after a 10 per cent collapse Tuesday led by losses for chip giants SK hynix and Samsung after their recent string of record highs.

There were also gains in Hong Kong and Shanghai Wednesday, though Tokyo once more ended lower.

European stock markets mostly rose, though Frankfurt was pulled down by a 19-per cent fall in German defense giant Rheinmetall after Berlin scrapped a multibillion-euro plan to build six new frigates for its navy.

On currency markets, the dollar continued its advance spurred by last week's Federal Reserve meeting, when new chairman Kevin Warsh signaled that fighting inflation spurred by soaring oil and gas prices would be his priority.

Traders took that to mean interest rate hikes could be on the cards as soon as September, spurring demand for the greenback as US Treasury yields become more attractive.

"The dollar has climbed to a seven-month high as investors seek safety amid equity volatility," said Patrick Munnelly, market strategist at Tickmill Group.

He noted that investors will be looking at US inflation data Thursday for clues as to the timing of any rate increase.

But the prospect of higher US rates cut into gold's status as a safe-haven investment, with its price falling below US$4,000 for the first time since November.

Source: AFP/fs