Oil Surges as Middle East Escalation Ends Equity Rally

On June 3, U.S. equities ended a nine-day winning streak as surging oil prices and renewed Middle East tensions weighed on risk assets, with the S&P 500 falling 0.74% to 7,553.68. The move followed weeks of volatility driven by US-Iran ceasefire hopes and setbacks: oil crashed below $95 on May 25 after Qatar-mediated talks, rebounded above $97 after fresh U.S. strikes on May 26, then fell back below $92 by May 29 on a reported 60-day ceasefire extension. WTI briefly touched $95 on June 2 before easing to $91.20 as markets awaited a final US-Iran memorandum, leaving energy prices highly sensitive to headline risk.