Crude Spikes After Iran Talks Stall, Micron Enters Bear Territory

Oil prices jumped Monday as U.S.-Iran peace talks took an unexpected turn. Multiple news outlets reported the negotiations stalled. The shift revived supply risk from the Middle East where a meaningful share of global crude moves through the Strait of Hormuz. West Texas Intermediate crude topped $78 a barrel, its highest level in two weeks. Traders said the breakdown raised the probability of disrupted flows.

The broader equity market sold off alongside the energy spike. The S&P 500 dropped roughly 1%. The tech-heavy Nasdaq Composite fell more sharply as growth stocks took the brunt. The dollar strengthened against most emerging-market peers. Risk-off sentiment swept through currencies and rates.

Micron Technology slid into bear territory. The stock has fallen at least 20% from its 52-week high. The memory-chip maker has been under pressure from weak demand in PC and smartphone markets. Monday's broader selloff accelerated the decline. The stock closed at its lowest level since early January.

Traders are now turning to the Federal Reserve. The central bank will release minutes from its May FOMC meeting on Wednesday. The record will offer details behind the decision to hold rates at 5.25%-5.50%. It may show discussion about the timing of future cuts. Markets price a modest chance of a September reduction. The minutes could shift those odds if they reveal a more hawkish lean.

The Iran talks breakdown is the immediate catalyst for crude. The larger story involves the supply-demand picture. OPEC+ meets in early June to decide production targets. A deeper cut could compound the geopolitical premium. The U.S. has previously warned of new strikes on Iran. That scenario raises the risk of a sustained conflict that keeps oil elevated. Higher crude would pressure equities further by raising input costs and squeezing corporate margins.

The combination of higher oil and higher rates creates a headwind for stocks. Crowded tech trades face particular vulnerability. Micron's bearish turn serves as a warning that even structurally favored sectors are exposed to macro shocks.

The FOMC minutes will be published at 2:00 p.m. Eastern on Wednesday. Any signal that the committee sees inflation as sticky could reinforce the selloff. A dovish tilt might provide a floor for equities. The oil spike would remain a counterweight.

For context on how crude supply disruptions can cascade through energy markets, see the crude oil profile. The renewed risk from Middle East tensions echoes patterns detailed in the analysis of Trump Warns of Imminent New Strikes on Iran, Oil at Risk.