Evening digest: Iran war lifts oil, Waymo eyes $3B debt deal

Fighting between the US and Iran intensified around the Strait of Hormuz, pushing energy prices higher as concerns grew over prolonged disruption to global supplies.

Waymo is nearing a deal to raise more than $3 billion in debt as Alphabet’s autonomous-driving unit seeks additional funding for expansion.

Gold rebounded from a near one-month low as the US dollar and Treasury yields retreated ahead of key US payrolls data.

Oil prices also climbed as renewed US-Iran strikes raised concerns about further restrictions on crude shipments through the Strait of Hormuz.

US-Iran clashes intensify as Strait of Hormuz risks rise

The US military carried out a second round of strikes in three days overnight, targeting radar systems and mine-laying capabilities along Iran’s southern coast.

Iran responded with drone and missile attacks on US bases across the Middle East.

Iran’s Red Crescent Society said at least four people were killed and about 67 injured after Tehran accused the US of striking a wedding ceremony in the southern coastal city of Sirik.

US Navy Captain Tim Hawkins, a Centcom spokesperson, said, “The US military never targets civilians.”

The renewed fighting ended a period of relatively subdued military activity during which oil shipments through the Strait of Hormuz recovered to roughly half of pre-war levels.

Further disruption could affect supplies of oil, gas and other commodities, adding to energy prices and inflation.

Waymo moves toward more than $3 billion debt financing

Waymo is in the final stages of discussions to raise more than $3 billion in debt as Alphabet’s autonomous-driving unit seeks to diversify its sources of capital.

Blackstone and Sixth Street Partners are among the lenders involved, while Pacific Investment Management Co. is also participating, said a Bloomberg report. The debt would be unrated and could price at more than 500 basis points over the benchmark.

Waymo has traditionally relied on equity financing and raised $16 billion earlier this year at a $126 billion valuation.

The company is seeking additional forms of capital as it expands its driverless fleet and faces rising AI costs.

Waymo aims to operate 1 million paid weekly rides across 20 cities globally this year.

It currently provides more than 500,000 paid trips each week in 14 US cities and is preparing to test its service in locations including London and Tokyo.

Gold rebounds as yields and dollar retreat

Gold prices recovered Wednesday after falling to their lowest level since Aug. 7 earlier in the session.

Spot gold rose 1.24% to $4,382.18 an ounce, while US gold futures for December delivery gained 0.68% to settle at $4,426.20.

The rebound came as the US dollar and Treasury yields pulled back from recent highs.

Investors were also awaiting Friday’s nonfarm payrolls report for further indications about the Federal Reserve’s policy path.

US private payroll growth was weaker than expected in August, but gold remained largely unchanged as markets focused on the upcoming nonfarm payrolls report.

Traders were pricing a 64% chance of an interest-rate hike at the Fed’s September meeting, according to the CME FedWatch Tool.

Oil prices climb as Hormuz disruptions threaten supply

Brent crude prices rose 0.9% to $95.53 a barrel, while West Texas Intermediate futures gained 70 cents to $90.92.

Both benchmarks moved sharply during the session, with prices alternating between gains and losses.

The Strait of Hormuz remains a key focus because it carried about one-fifth of global oil and LNG consumption before the conflict.

Preliminary Kpler data showed four commodity vessels transited the waterway Tuesday, below the 10-day average of about 13.

Iran’s Revolutionary Guards said two oil tankers hit sea mines and were disabled while attempting to transit the strait.

The Islamic Revolutionary Guard Corps also warned that US attacks would further restrict traffic.

Meanwhile, US crude inventories fell by 4.5 million barrels last week, according to the Energy Information Administration, compared with expectations for a 1.1 million-barrel decline.