US Stocks Dip Amid Oil Surge on Middle East Tensions as GameStop Bids for eBay

U.S. stock markets declined on Monday, pulling back from record levels, while oil prices surged amid escalating tensions in the Middle East. This came as Brent crude oil leaped 5.6% to $114.21 per barrel after reports of attacks on the United Arab Emirates by Iran, the first since a fragile ceasefire began in early April.

The oil price spike followed Iranian claims of striking a U.S. Navy vessel near the Strait of Hormuz, which the U.S. military denied, stating no such incident occurred. Instead, U.S. officials reported that two American-flagged merchant ships successfully transited the strait that day.

The strait has been closed by Iran, trapping oil tankers in the Persian Gulf and driving Brent prices up from around $70 per barrel before the conflict. President Trump stated Sunday that the United States would guide ships through the strait to resume oil flows and potentially lower prices.

However, prices rose further after the Iranian reports and subsequent U.S. denial. The uncertainty has not halted U.S. stocks from setting records earlier, supported by strong corporate profits across sectors.

Several companies reported quarterly results that influenced trading. Tyson Foods exceeded analysts' expectations for profit and revenue, with beef revenue edging up due to 11.5% higher prices despite lower volume, and increased sales of chicken and pork.

Its stock rose 3.9%. Norwegian Cruise Line Holdings also beat profit forecasts but noted headwinds from the Middle East conflict, including higher fuel costs and reduced bookings for Europe travel. The company cited some execution issues affecting reservations, and its stock fell 9.2%.

Technology stocks provided some counterbalance, with gains in companies involved in artificial-intelligence technology. Micron Technology climbed 5.8%, Oracle rallied 5.7%, and Sandisk gained 4.4%. Abroad, South Korea's index jumped 5.1% and Hong Kong's rose 1.2% on tech strength, while France's CAC 40 fell 1.7%.

In the bond market, the 10-year Treasury yield rose to 4.45% from 4.39%, up from 3.97% before the war, increasing borrowing costs for U.S. households and businesses.

GameStop announced a proposal to acquire eBay for approximately $56 billion in cash and stock, including a 5% stake already built in eBay. The offer values eBay at about $125 per share, compared to its Friday close of $104.07. GameStop highlighted potential to cut $2 billion in annual costs quickly.

Market reaction saw GameStop shares fall 7.8% while eBay rose 5.7%. GameStop's market value is about $12 billion, compared to eBay's $46 billion, raising questions about financing the deal for the much larger online marketplace. The proposal structures the bid as 50% cash and 50% stock, with GameStop indicating ability to issue stock to complete it.

This follows GameStop's history of volatile stock movements during the 2021 meme stock surge.

Amazon revealed plans to open its global supply-chain network to all businesses, expanding beyond its own operations. The new service, called Amazon Supply Chain Services, includes freight, distribution, fulfillment, and parcel shipping. This move positions Amazon directly against logistics firms like UPS and FedEx, similar to how its cloud services disrupted that industry.

The expansion aims to handle deliveries for external companies, potentially broadening Amazon's role in global shipping.

Australia, the sharemarket was poised to open lower, with futures indicating a 0.9% drop after a 0.4% loss on Monday. The Reserve Bank of Australia is set to announce its interest rate decision on Tuesday, with markets pricing a 75% chance of a hike due to higher inflation, and another expected by October.

Elsewhere, Equinor extended drilling and well services contracts worth $1.8 billion to maintain production amid declining fields, targeting 1.2 million barrels of oil equivalent per day by 2035. The Gulf construction market, valued at $175 billion in 2025, has paused amid the Iran conflict.