Moody's on Friday downgraded the credit rating of the United States by a notch to "Aa1" from "Aaa", citing rising debt and interest "that are significantly higher than similarly rated sovereigns". "Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,

Moody’s downgrade from AAA to Aa1 reflects concern about government debt and ends a 108-year perfect rating from the firm, despite previous warnings and previous downgrades from Fitch and S&P Global. Treasury Secretary Scott Bessent dismissed the downgrade as a lagging indicator that reflects rising debt under the Biden administration.

Oil prices drop due to Moody's downgrade of the U.S. credit rating and rising concerns about economic stability and global tensions.