Brent crude futures LCOc1 retreated 3% after six consecutive sessions of gains as investors assessed prospects for weaker global demand this year and higher U.S. crude stocks.
Iran and the United States remain at loggerheads over efforts to agree on a permanent end to the war in the Middle East, according to a senior Iranian source, while traffic through the vital Strait of Hormuz remained severely curtailed.
U.S. producer prices were unchanged in July as goods prices fell and the cost of services increased marginally, while the number of Americans filing claims for unemployment benefits increased moderately last week, pointing to a stable jobs market, data showed.
This follows benign July consumer inflation data that strengthened expectations that the Fed would hold interest rates steady at its next meeting.
Traders added to bets on a Fed interest rate hold next month, pricing in a 65% chance compared with 60% before the print, futures that settle to the Fed's policy rate showed.
The Dow .DJI was hovering close to its record high, while the Nasdaq .IXIC was around 1.6% below its own peak.
Robust earnings in several sectors, including technology, have provided the latest tailwind for U.S. stocks after a rocky start to the second half of 2026.
Advancing issues outnumbered decliners by a 1.78-to-1 ratio on the NYSE and by a 1.41-to-1 ratio on the Nasdaq.
The S&P 500 posted 28 new 52-week highs and one new low, while the Nasdaq Composite recorded 129 new highs and 68 new lows.
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