The reverse correlation between oil prices and stocks/bonds was given yet another kicker overnight with the posting of Nvidia results. The CEO of the tech darling, Jensen Huang, was cock-a-hoop claiming the AI industry had reached a “golden age”, as the chipmaker posted revenue of $96.2 billion for the second quarter, far outstripping the $92 billion Wall Street expectation.
Oil prices fall when supply is abundant and/or demand is scarce. Equities strengthen when economic prospects are sanguine. In light of this economic trivia, it is worth re-citing the US Treasury Secretary. As the US imposed fresh sanctions on Iran on Monday, it targeted digital assets, technology, gold, aviation and shipping—with emphasis on the last one. The cantankerous announcement also carried a warning that a ‘defined timeline’ would be given to Iran’s trading partners to sever ties or risk being ‘cut off from the US financial system’. Yet oil dropped like a stone over two days, stocks strengthened yesterday, and bond yields stabilised.
The insulting invocation of ‘D-Day’ by Scott Bessent, the US Secretary of Treasury, when foregrounding in the ‘Financial Times’ over the weekend of the coming new sanction regime the US will impose on Iran was given meat to its bone yesterday. ‘Operation Economic Outcast’ aims to cut Iran’s economic lifeline by targeting all of Iran’s sources of revenue, including oil, with the goal of preventing corporations and countries alike from conducting trade with Iran.
Parameta Solutions, the data and analytics arm of TP ICAP, delivers global energy and commodities market data sourced directly from PVM. This empowers traders, analysts, and risk managers to optimise hedging strategies, price contracts and reduce risk exposure.
Discover more about accessing their energy, commodities, and real-time oil data.
Copyright © 2026 TP ICAP