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Oil up on uncertainty; US PMI strengthens; Hewlett Packard reaches record level
Geopolitical tensions and a blocked Strait of Hormuz drove crude oil prices higher, with Brent approaching the $95 mark. Concurrently, US equity indices hit record highs, propelled by a multi-year high in the manufacturing Purchasing Managers' Index (PMI) and stellar quarterly earnings from Hewlett Packard Enterprise.
Brent futures jumped 4.24% to $94.98 and WTI rose 5.63% to $92.22 as the intensifying US–Israel–Iran tensions and a blocked Strait of Hormuz impact on global energy supply chains.
The US Manufacturing PMI hit a multi-year high of 54.0 in May, comfortably beating market expectations and pointing to a robust economic expansion.
Hewlett Packard Enterprise shares rallied 9.20% on blowout corporate earnings, posting $10.7 billion in revenue and a massive 107% year-on-year surge in earnings per share.
A busy week of high-impact economic events, including US Non-Farm Payrolls and Broadcom’s earnings report, is expected to drive further financial market price action.
Oil prices rise on geopolitical uncertainty
Oil prices increased amid rising doubts surrounding a prospective US–Iran peace agreement, signalling severe fragility in bilateral diplomatic relations. According to a Reuters report, Iran’s Tasnim news agency stated that Tehran’s negotiation team has halted the exchange of messages with the US, following Israeli military operations in Lebanese territory. Concurrently, retaliatory attacks between Iran and the United States occurred over the weekend on Iranian territory despite the active ceasefire. This has cast significant doubt over the reopening of the Strait of Hormuz, which continues to choke critical energy supply chains in the Middle East.
Consequently, the Brent futures contract (BRNQ6) rose by 4.24% to settle at $94.98 per barrel, while the West Texas Intermediate (WTI) futures contract (CLN6) advanced by 5.63% to close at $92.22 per barrel. Crude prices typically react aggressively to geopolitical factors; the expanding US–Israel–Iran conflict has heavily disrupted energy transit routes, given that approximately 20% of global oil supplies transited through the Strait of Hormuz before the onset of hostilities.
US manufacturing PMI achieves multi-year historical high
According to data released by the US Institute for Supply Management (ISM), the manufacturing PMI advanced from 52.7 in April to 54.0 points in May, printing well above analyst expectations of a modest increase to 53.0 points. The current PMI sits at its highest level since May 2022 and reflects sustained economic expansion, remaining comfortably above the 50.0 neutral threshold. The ISM report indicated that the most prominent gains originated from new orders (rising to 56.8), production (54.3), and order backlogs (52.2)—all exhibiting solid expansionary momentum. Furthermore, the new export orders index returned to growth territory, reaching 50.6.
Consequently, US equity benchmarks achieved fresh record highs, driven by the strong manufacturing data and momentum within the technology sector—most notably from Hewlett Packard Enterprise, which reported robust quarterly earnings results to close up 9.20%. In tandem, Nvidia’s shares appreciated by 6.26%, while Microsoft gained 2.28%. The S&P 500 index increased by 0.26% to close at 7,599, the Nasdaq 100 rose by 0.60% to 30,513, and the Dow Jones Industrial Average advanced by 0.09% to end the session at 51,084 points.
Figure 1. US ISM Manufacturing PMI (2023–2026). Source: Data from the Institute for Supply Management (ISM); Figure obtained from Trading Economics.
Hewlett Packard shares reach record high amid better-than-expected earnings results
Hewlett Packard Enterprise (HPE) surpassed analyst expectations for both total revenue and earnings per share (EPS) in its latest quarterly financial results. The technology firm reported revenue of $10.7 billion, beating the Wall Street consensus estimate of $9.78 billion. Meanwhile, EPS printed at $0.79, comfortably exceeding the forecast of $0.53. These figures represent an impressive year-on-year (YoY) growth rate of 39.9% in total revenue and a 107% surge in EPS. Driven by the blowout report, Hewlett Packard’s shares closed with a daily appreciation of 9.20%, extending gains by an additional 30% in post-market trading following the release.
Quarterly US financial results
The first-quarter 2026 earnings season continues this week. The following key institutions are scheduled to report, which may contribute to further volatility in the US equity markets:
Monday
- Hewlett Packard Enterprise (HPE)
Tuesday
- Palo Alto Networks (PANW)
Wednesday
- Broadcom Inc. (AVGO)
Thursday
- Lululemon Athletica (LULU)
Key economic events this week
Several critical economic indicators are scheduled for release this week, with the following being of particular importance to market participants:
Monday
- China: RatingDog Manufacturing PMI
- US: ISM Manufacturing PMI
Tuesday
- European Union: Inflation Rate
- US: JOLTs Job Openings
Wednesday
- Australia: GDP Growth Rate
- US: EIA Crude Oil Stocks Change
- US: ISM Services PMI
Thursday
- Australia: Balance of Trade
Friday
- India: GDP Growth Rate
- US: Non Farm Payrolls
- US: Unemployment Rate
- Canada: Unemployment Rate
