Oil Prices Rise Toward $100 as Ceasefire Doubts Mount; US Stock Futures Decline
Oil prices increased on Thursday amid skepticism over a US-Iran ceasefire, with benchmark US crude reaching $99.44 per barrel. US stock futures fell, with S&P 500 and Nasdaq futures down 0.4% and Dow futures down 0.5%. The developments followed Israeli strikes on Lebanon and Iran's closure of the Strait of Hormuz.
FortuneOil prices rose early Thursday amid uncertainties surrounding a ceasefire agreement between the United States and Iran. 70 per barrel. The gains reversed an earlier decline that had followed optimism over the temporary truce announced by US President Donald Trump.
US stock futures pointed to losses at the market open. 5%. 5% and 3% after Trump's announcement of a two-week ceasefire late Tuesday. Skepticism emerged shortly after the announcement due to Israeli strikes on Lebanon that resulted in hundreds of deaths and injuries.
Iran responded by closing the Strait of Hormuz, a key chokepoint through which about one-fifth of the world's oil passes. The United States has demanded the strait be reopened, but it remained largely closed. The Strait of Hormuz's closure raised concerns over global energy supplies.
ING Bank analysts Ewa Manthey and Warren Patterson noted in a Thursday report that oil prices rebounded as Middle East fighting continued and the ceasefire outlook weakened, with uncertainty focused on the strait. Talks for a permanent end to the conflict are scheduled to begin in Pakistan on Saturday, with US Vice President JD Vance expected to lead the American delegation.
Trump stated on his Truth Social platform that US military forces would remain in the region until a real agreement is fully implemented.
European markets showed declines at midday. 3%. Asian markets closed mostly lower. 17. 6%. 57 yen. 1663.
Key Facts
Story Timeline
5 events- Thursday morning
Oil prices rose 5.4% to $99.44 per barrel amid Strait of Hormuz closure.
1 sourceFortune - Thursday
US stock futures declined 0.4-0.5% before market open.
1 sourceFortune - Wednesday
Major US indices gained 2.5-3% after Trump's ceasefire announcement.
1 sourceFortune - Late Tuesday
Trump announced a two-week ceasefire with Iran.
1 sourceFortune - Post-announcement hours
Israeli strikes on Lebanon killed and injured hundreds; Iran closed Strait of Hormuz.
1 sourceFortune
Potential Impact
- 01
Closure of Strait of Hormuz could disrupt one-fifth of global oil supply.
- 02
Declining stock futures could lead to lower market openings in US.
- 03
Ongoing Middle East tensions may delay permanent ceasefire negotiations.
- 04
Rising oil prices may increase energy costs for consumers and industries.
- 05
European and Asian market declines may affect global investor sentiment.
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