US equity markets showed mixed performance on Wednesday as investors balanced geopolitical tensions in the Middle East with the latest US inflation figures.

The Nasdaq Composite hovered near flat levels, while the S&P 500 slipped about 0.1%. The Dow Jones Industrial Average declined roughly 0.6%, losing more than 250 points after a volatile session the previous day ended largely unchanged.

Market sentiment has been heavily influenced by developments surrounding the ongoing conflict involving Iran. Concerns over potential disruptions to global energy supplies pushed crude oil prices higher after reports that three vessels were attacked near the Strait of Hormuz, a critical shipping route for global oil flows.

As a result, West Texas Intermediate (WTI) crude futures climbed above $87 per barrel, while Brent crude traded around $89 per barrel, reflecting persistent worries about supply risks in the region.

In an effort to calm energy markets, the International Energy Agency (IEA) announced plans to release 400 million barrels of oil from strategic reserves, marking the largest emergency supply intervention in its history. The move is intended to stabilize prices after crude briefly surged close to $120 per barrel earlier this week amid escalating tensions.

On the economic front, investors also digested the latest inflation data. The Consumer Price Index (CPI) for February showed prices rising 0.3% month over month and 2.4% compared with a year earlier, both figures matching market forecasts.

While the report offered reassurance that inflation remains broadly under control, it does not yet reflect the recent spike in energy prices triggered by geopolitical developments.

In corporate news, Oracle shares rallied after the technology company delivered stronger-than-expected earnings and issued a positive outlook, helping support the tech sector even as broader market sentiment remained cautious.

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