Oil Near $100, US-Iran Talks Weigh on Tech Ahead of Fed

WTI crude traded near $100 and renewed US‑Iran negotiations removed recent gains in the technology sector as investors prepared for the Federal Open Market Committee decision and mega‑cap earnings from Microsoft, Meta, Alphabet and Amazon due tomorrow. The Nasdaq underperformed other U.S. indexes.

Oil prices rose after nearly 60 days of conflict in the region and the continued closure of the Strait of Hormuz, reducing physical supply and pushing WTI toward triple digits. Markets had rallied more than two weeks ago following ceasefire announcements; that rally was amplified by heavy options positioning and short covering and has since partially reversed.

The technology sector, which drove much of the earlier advance, lost leadership as traders trimmed exposure ahead of the four mega‑cap reports. Higher oil increases input costs for some firms and can pressure profit margins.

Economic releases and central bank events added to market caution. Australia will publish consumer price data tonight, Germany will report CPI and the European consumer sentiment reading follows, and the Bank of Canada will announce its rate decision before the FOMC meeting.

Energy markets led equity declines around the globe and metals lagged while investors moved to safer positions. The U.S. dollar strengthened but overall currency moves remained muted as market participants awaited central bank guidance.

Options flows and prior short covering amplified the earlier run to record highs; market participants cited those technical factors as less supportive once geopolitical risk reemerged. The retest of the $100 crude level prompted many traders to reassess positions.

Negotiations between U.S. and Iranian officials expected over the weekend are being watched for signs of de‑escalation that could relieve pressure on oil. Traders cited the possibility of a hawkish Fed response or disappointing corporate results as potential triggers for further market swings.

With several large companies reporting strong profits last week, some investors closed positions or took profits ahead of tomorrow’s heavy earnings slate. Trading volumes rose as market participants awaited the FOMC decision, the earnings reports and any updates from the US‑Iran talks.