NEW YORK (CNN/Money) - Oil stocks will be in the sights of investors Wednesday as tensions in the Middle East continue to drive crude prices higher.

Eyes also will be on the technology sector for any further hints about upcoming tech earnings.

On Tuesday crude oil prices rose to their highest level in six months as a possible oil embargo by Iraq intensified concerns about trouble in the Middle East.

Iraq's acting Foreign Minister Human Abdul-Khaleq Abdul-Ghafur said Baghdad was ready to cut off oil supplies to the United States if Iran, a non-Arab Mideast producer, did the same.

Meanwhile techs were pressured by a series of software earnings warnings and a less positive outlook from Goldman Sachs about the hardware sector.

Investors also will be looking for the Institute Supply Management's services index, which is expected to edge down slightly according to a consensus number provided by Briefing.com.

After the bell Tuesday, Internet software maker Interwoven (IWOV: Research, Estimates), a maker of software that enables companies to manage and archive what appears on their Web pages, said it expects to post a first-quarter loss in the range of 10 cents to 12 cents a share, excluding charges. Revenue is expected to be in the range of $32 million to $33 million.

In January, the company told analysts that it expected to lose 3 cents to 5 cents a share on revenue of $42 million to $44 million.

Shares of Interwoven fell 75 cents to $4.82 after hours.

Moody's cut San Jose, California-based Calpine's (CPN: Research, Estimates) senior unsecured debt to "B1," its fourth- highest junk grade, from "Ba1." It also cut several other ratings, and its actions affect $12.4 billion of debt. Its rating outlook is negative. Downgrades often raise borrowing costs.

The stock fell to $12.35 from $13.10 after hours on Instinet.  

-- from staff and wire reports