US equities settle lower as escalating Iran hostilities sour risk appetite

NEW YORK — US stocks closed lower on Wednesday as markets largely looked past a tame inflation report, focusing instead on intensifying hostilities and mounting repercussions related to the US-Israeli war on Iran.

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Trade was choppy for much of the session as investors were caught in a tug-of-war over oil supply concerns. Iran continued to attack ships in the blockaded Strait of Hormuz, but OPEC assured markets that Saudi Arabia had ramped up production and the International Energy Agency (IEA) agreed to release 400 million barrels of oil from its strategic reserves.

The Dow logged the steepest percentage drop among the three major US equity indexes, while chip manufacturers lifted the tech-heavy Nasdaq to a marginal, late-session gain.

The Labor Department’s Consumer Price Index (CPI) indicated that inflation remained moderate last month, matching analyst expectations.