---
title: "Analysts warn of looming market correction as oil tops $100"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287004061.md"
description: "Analysts warn that rising oil prices, now above $100 due to Iran's closure of the Strait of Hormuz, are fueling inflation and squeezing corporate profits. This situation creates a disconnect with record-high equities and increasing borrowing costs, raising the risk of a market correction. The Fed may consider rate hikes to stabilize markets as inflation expectations rise."
datetime: "2026-05-20T04:19:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287004061.md)
  - [en](https://longbridge.com/en/news/287004061.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287004061.md)
---

# Analysts warn of looming market correction as oil tops $100

Oil's inflation shock: Iran’s closure of the Strait of Hormuz has pushed oil above $100, fueling inflation and squeezing corporate profits. Market disconnect: Experts warn that record-high equities clash with rising borrowing costs and energy prices, raising correction risks. Fed's policy dilemma: With inflation expectations climbing, the Fed may consider rate hikes to stabilize markets and anchor investor confidence.

### Related Stocks

- [OXY.US](https://longbridge.com/en/quote/OXY.US.md)
- [XLE.US](https://longbridge.com/en/quote/XLE.US.md)
- [XOP.US](https://longbridge.com/en/quote/XOP.US.md)
- [OIH.US](https://longbridge.com/en/quote/OIH.US.md)
- [IEO.US](https://longbridge.com/en/quote/IEO.US.md)
- [UCO.US](https://longbridge.com/en/quote/UCO.US.md)
- [IXC.US](https://longbridge.com/en/quote/IXC.US.md)
- [USO.US](https://longbridge.com/en/quote/USO.US.md)
- [XES.US](https://longbridge.com/en/quote/XES.US.md)
- [VDE.US](https://longbridge.com/en/quote/VDE.US.md)
- [BNO.US](https://longbridge.com/en/quote/BNO.US.md)
- [IEZ.US](https://longbridge.com/en/quote/IEZ.US.md)
- [CRAK.US](https://longbridge.com/en/quote/CRAK.US.md)

## Related News & Research

- [ROI-ENERGY WATCH: Alarms and clocks](https://longbridge.com/en/news/286796437.md)
- [Capital Economics sees oil at $150 per barrel through 2027 in an extreme case](https://longbridge.com/en/news/286549728.md)
- [Oil rises more than 1% after drone attack on UAE nuclear power plant](https://longbridge.com/en/news/286683769.md)
- [Fed's May inflation forecast spikes, rate cuts unlikely in 2026](https://longbridge.com/en/news/286852758.md)
- [ANALYSIS-Bond yield spike is risk to unprepared equities market, investors warn](https://longbridge.com/en/news/286668628.md)