Stocks Rise and Oil Recedes After Iran's Retaliation Avoids Energy Infrastructure
Oil prices retreated and stocks climbed on Monday after Iran's retaliation against the U.S. avoided striking critical energy infrastructure, easing fears that the conflict in the Middle East would roil crude markets.
U.S. oil futures fell 7.2% after Iran launched missiles at a U.S. base in Qatar and into Iraq, with no casualties reported. The drop was a sharp reversal from Sunday night, when U.S. oil prices surged more than 6% in response to the U.S. bombing of Iran's nuclear sites over the weekend.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
35 minutes ago
- Yahoo
Sweeping property tax reform may save Ohioans $850
COLUMBUS, Ohio (WCMH) — A new property tax reform bill at the Ohio Statehouse has some singing its praises, and others sending out warning signals. House Bill 335, sponsored by Rep. David Thomas (R-Jefferson), is the latest in a series of bills aimed at reducing Ohioans' property tax burden. This new proposal folds several ideas into one bill and is estimated to bring Ohioans $3.5 billion in relief. Ohio State lost $29 million in three months through DOGE grant cuts '[The bill] will impact five out of six Ohioans and tremendously limit the spikes that we have seen over the last five years,' Thomas said. Thomas said that if the bill passes before lawmakers break for the summer, which will happen at the end of June, 'the average Ohioan' will start saving more than $850 a year on their property tax bill come January 2026. 'Had we had this five years ago, we would not have had near, any, or close to the issues that have seen over the last five years,' he said. 'This needed to be done yesterday in the sense that our taxpayers have been crying out for that type of action.' The bill does things like ensure that schools are only receiving more money equivalent to the rate of inflation (unless it is levied), gives more authority to local jurisdictions to oversee property tax and abolishes inside millage for cities, villages and counties. Some said this bill will be 'catastrophic' to local governments. Columbus among most bedbug-infested cities in the country, recent analysis finds 'Putting them in a position where they are going to be restricted or almost stifled in providing the critical services that local governments have to provide,' Rep. Dan Troy (D-Willowick) said. More than 60% of local government revenue in Ohio comes from property taxes, with services like fire, police and schools relying on that revenue. John Harvey is the president of the Ohio Association of Professional Firefighters, representing 13,500 firefighters and EMS workers throughout Ohio. He said the impacts of this bill would be difficult to fight. 'Municipalities and townships could face budget shortfalls in the tens of millions,' he said. 'We've seen this before. Our partners will have to explore options like hiring freezes, deferred equipment upgrades, station closures and fewer personnel per shift.' Harvey said reform is necessary, but said it should not 'come at the expense of public safety.' He said the bill could put Ohioans in a position where they are waiting longer for help during emergencies. 'Ohio firefighters are not asking for luxuries,' Harvey said. 'We are asking for what's necessary for us to do our job safely. Keep the local funds local, keep the funding stable, and keep our residents safe.' Some local police departments opt to charge for body camera video in light of new law Public schools would also not be immune to this bill, President of the Ohio Education Association Scott DiMauro said. 'If House Bill 335 were to be enacted, we could see potentially a loss of 20,000 teachers in our state,' DiMauro said. 'No doubt we would see exploding class sizes, shrinking curriculum offerings, and a reduction of the vital services that our students need and deserve.' DiMauro pointed out that nearly 90% of all students in Ohio depend on public schools. Thomas said there are solutions to these problems that will not fall on the backs of property taxpayers. 'Counties are able to have a sales tax, our cities and our villages and our schools are able to have a [local] income tax,' Thomas said. 'Our question back is ultimately, 'If you have other ways to provide services, why place it all on the property owner who, over the last five years, has been crying out that enough is enough and they're tapped out?'' He said this will create 'a lot of conversations' about how the state provides services, what 'the basic requirements' are, and how to be taxpayer-friendly in providing them. Thomas said that in some cases, local governments can consolidate or share services too, instead of even turning to increases elsewhere. Westerville woman sentenced in $2.8M COVID-19 fraud after claiming ties to pizza shop Thomas said that is why 'real' tax reform is needed. 'There's no incentive to decrease spending, to share services, to actually cut the tax rate,' he said. 'There's just, unfortunately, the incentive to continue to ask Columbus, our state taxpayers, for more and more dollars to come back, and we would rather, say, keep that money at the local level, let local property owners, income taxpayers, sales tax folks decide where best to have that money being spent instead of sending it down to Columbus and us subsidize higher and higher taxes.' Thomas said he is eyeing the state budget to get this proposal through. The bill has its first hearing on Wednesday, which will include invite-only and written testimony, likely an effort to fast-track it before lawmakers break for the summer at the end of June. The multi-billion-dollar property tax relief package is being considered alongside a flat income tax rate in the state budget as well. The state budget is likely to pass by the end of next week; lawmakers in the House and Senate are currently negotiating behind closed doors. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
35 minutes ago
- Yahoo
Intel's delay is costing AEP Ohio, but company says price hikes are unrelated
NEW ALBANY, Ohio (WCMH) — After Intel delayed construction into 2031, AEP Ohio was left with a nearly complete power station and nothing to power. In September 2024, the Public Utilities Commission of Ohio approved an authorized rate agreement between Intel and AEP Ohio. Now, the companies are hoping PUCO will approve an amended agreement, as Intel's delay postpones when AEP Ohio can start benefiting from its investment. Intel and AEP Ohio filed for an updated agreement on June 5, just four days after AEP Ohio announced a rate increase for customers. Despite the timing, an AEP Ohio spokesperson told NBC4 the rate increase was unrelated to its agreement with the semiconductor giant. Intel to lay off up to 20% of division responsible for Ohio plant 'Those are pass-through charges from generation suppliers to AEP Ohio customers, largely driven by power supply and demand across the 13-state power grid that includes Ohio, and AEP Ohio makes no money on them,' an AEP Ohio spokesperson told NBC4. Once Intel is up and running, it will have its power costs offset by Ohioans, who will pay small added fees through the distribution investment rider. This added fee is not unique to Intel; as of June, AEP customers already pay between $2-$3 each bill through unrelated DIR fees. 'The costs associated with AEP Ohio investments to be used in serving Intel will not be reflected in rates until after Intel begins taking permanent power at the fabrication facilities,' AEP Ohio said via a spokesperson. The original agreement said AEP Ohio would cover the costs of a 500 megawatt power substation, dubbed Green Chapel Station, to deliver Intel's vast power demand. According to the Nuclear Regulatory Commission, that is enough MW to power as many as 500,000 homes. AEP Ohio would be able to bill other Green Chapel Station users, and Intel would pay an undisclosed cheaper rate for 20 years. Sweeping property tax reform may save Ohioans $850 The station will be ready for service in August, and the new PUCO filing said AEP Ohio is about $10.4 million under the $95.1 million budget. According to the filing, AEP Ohio built the Green Chapel Station to align with Intel's original plan and needs. 'Due to Intel's two-year delay, even though the Green Chapel Station will be ready to use in accordance with the original timeline, Intel is not prepared to take service, preventing AEP Ohio from placing the Green Chapel equipment in service and incorporating it into the DIR,' the filing said. The new agreement asks for continued construction cost coverage for AEP Ohio to offset the delay. Intel has also agreed to cover any costs associated with the continued construction allowance that would push the total project cost beyond the original budget. Intel referred NBC4 to the state filing in lieu of a statement. The PUCO filing now awaits approval or other action from the state. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
43 minutes ago
What is the Strait of Hormuz and why does it matter?
The United States' entry into the Iran-Israel war over the weekend stoked fears of a wider conflict that could spread across the oil-rich Middle East and disrupt the global economy. President Donald Trump announced Monday evening on social media that Israel and Iran had agreed to a "complete and total" ceasefire -- although neither country initially acknowledged the announcement. Before Trump's announcement, investors' concerns centered on the Strait of Hormuz, a narrow waterway and trading route off the Southern coast of Iran that facilitates the transport of about 20% of liquid petroleum consumed worldwide. The Iranian parliament on Sunday approved closure of the Strait of Hormuz, though the final decision will be made by Iran's Supreme National Security Council, Iranian state media reported. While Iran could disrupt the Strait of Hormuz through attacks on oil tankers, it's not clear how it could close the waterway — or if it has the capacity to do so. The Strait of Hormuz remains open. Oil prices initially fell more than 6% on Monday in the immediate aftermath of an Iranian attack on a U.S. military base in Qatar. As of Monday afternoon, there were "no reports of casualties," according to a U.S. official. The sharp drop in oil prices resulted from a perception that the Iranian retaliation may be over, Patrick de Haan, the head of petroleum analysis at GasBuddy, said in a post on X. Closure of the Strait of Hormuz could drive up the price of oil, hiking U.S. prices for gasoline and other goods, while slowing the global economy, experts said. But, they added, the move risks constraining Iran's own oil exports and those of neighboring countries. 'The continued accessibility of the Strait of Hormuz is pivotal to the global economic outlook,' Jim Reid, a research strategist at Deutsche Bank, said in a memo to clients on Monday. What is the Strait of Hormuz? The Strait of Hormuz is a waterway that runs along the Southern coast of Iran and the Northern coast of Oman. The passage marks the only shipping route that stretches from the Persian Gulf to the open ocean, making it a key travel hub for goods originating in oil-rich Gulf countries like Saudi Arabia, Qatar and Iran. At its narrowest point, the Strait of Hormuz is just 21 miles wide. 'We're talking here about a very, very narrow geographic space, and the shipping lanes are even more narrow,' Adam Klein, director of the Robert S. Strauss Center for International Security and Law at the University of Texas at Austin, told ABC News. 'This is a highly vulnerable, highly strategic chokepoint.' Last year, an average of about 20 million barrels per day passed through the Strait of Hormuz, which amounts to roughly 20% of liquid petroleum consumed worldwide, according to the U.S. Energy Information Administration, or EIA, a government agency. The vast majority of oil that passes through the strait is bound for Asian markets. Nearly 5 million barrels of oil arrived in China via the Strait of Hormuz each day last year, the EIA said, while about 2 million barrels of such oil ended up in India on a daily basis. By comparison, the U.S. imported just 500,000 barrels of oil each day via the Strait of Hormuz. The U.S. is a net exporter of crude oil, meaning the country produces more oil than it consumes. Since oil prices are set on a global market, U.S. prices move in response to swings in supply and demand. 'The closure of the Strait of Hormuz can cause prices U.S. consumers pay to rise,' Klein said, but he noted other nations could be more vulnerable since they rely more on oil that travels through the Strait of Hormuz. Why does the Strait of Hormuz matter? As a bottleneck for a large share of global oil, the Strait of Hormuz could become the site of a significant disruption of the global economy, some experts told ABC News. Oil prices could surge from a current level of about $74 per barrel up to $120 per barrel if the Israel-Iran conflict damages Iranian oil infrastructure or impedes the passage of some oil tankers in the Strait of Hormuz, Ramanan Krishnamoorti, a professor of petroleum engineering at the University of Houston, told ABC News. That scenario would amount to a more than 60% surge in oil prices, Krishnamoorti added, resulting in a proportionate hike for gas prices. The average price of a gallon of gas would climb from its current level of $3.22 to over $5, since crude oil makes up the key ingredient in auto gasoline. "If we see any throttling back of the Strait of Hormuz, we'll see a massive increase in the price of oil," Krishnamoorti said. That forecast of a potential price spike for oil matched a prediction from asset management firm Lazard, which warned last week of a possible escalation involving "strikes on Gulf energy installations or attempts to temporarily close the Strait of Hormuz." Such a scenario would trigger "price increases upwards of $120 per barrel," Lazard said in a memo to investors. A hike in the price of oil would not only increase the price of gasoline but could also push up prices for a range of other goods, since transport expenses will rise as shippers and truckers pay higher fuel costs. EY, a global accounting firm, outlined a possible Iran War scenario of 'significant escalation' that involves blockage in the Strait of Hormuz and attacks on ships in the Red Sea. Under such circumstances, the U.S. and global economies would likely enter a recession as a result of 'severe supply chain strains and inflationary pressures,' EY said. Still, Iran may opt against closing the strait. The move would impede Iran's own oil exports, which make up a key source of revenue, and it would risk alienating Middle East neighbors, Klein said. 'It would turn countries against Iran that have thus far been on the fence,' Klein said. 'Iran would be hurting those consumers and economies, as well as Israel and the U.S.'
