Oil prices jump and stocks are mixed as the standoff over the Strait of Hormuz persists
AP News • • business
Key Points:
- Oil prices surged over 5% as Iran reversed its decision to reopen the Strait of Hormuz, keeping the vital Persian Gulf waterway closed amid a standoff with the U.S., which maintains a naval blockade on Iranian ports.
- U.S. benchmark crude rose 5.3% to $87.88 per barrel, while Brent crude also gained 5.3% to $95.62 per barrel, reflecting concerns over disrupted oil shipments from the Middle East.
- Global stock markets showed mixed reactions: U.S. futures and major European indices declined, while most Asian markets posted modest gains despite uncertainty about oil transport through the strait.
- The U.S. stock market had recently hit record highs on hopes of a ceasefire and reopening of the strait, but renewed tensions and the expiration of a fragile ceasefire on Wednesday have increased market volatility.
- The U.S. dollar strengthened slightly against the yen and euro amid ongoing geopolitical tensions, while market sentiment remains cautious as investors weigh the impact of the conflict on the global economy.
