Oil prices rise again, world shares retreat on fragile Iran ceasefire
Oil rose again and world shares were mostly down Thursday on skepticism over a fragile ceasefire between the US and Iran.Investors were closely watching whether a two-week ceasefire between the United States and Iran was already slipping after a round of intense Israeli strikes on Lebanon that killed and injured hundreds.Iran again closed the Strait of Hormuz, in response to the attacks in Lebanon.
In early European trading, Britain’s FTSE 100 fell 0.3 per cent to 10,572.73. France’s CAC 40 dropped 0.8 per cent to 8,198.77, while Germany’s DAX lost 1.3 per cent to 23,771.68.Asian shares closed mostly lower. Tokyo’s Nikkei 225 dropped 0.7 per cent to 55,895.32, while South Korea’s Kospi lost 1.6 per cent to 5,778.01. Hong Kong’s Hang Seng fell 0.5 per cent to 25,752.40. The Shanghai Composite index was down 0.7 per cent to 3,966.17. Australia’s S&P/ASX 200 edged up 0.2 per cent to 8,973.20. Taiwan’s Taiex was 0.3 per cent higher, while India’s Sensex dropped 1.6 per cent.
US futures were down more than 0.4 per cent.Oil prices were up Thursday, reversing an earlier plunge on optimism over the temporary ceasefire agreement. Brent crude, the international standard, was up 3.5 per cent to $98.09 per barrel. Benchmark US crude was 3.6 per cent higher on Thursday at $97.83 a barrel.
Uncertainties over global energy supply remained. The Strait of Hormuz, a chokepoint for energy transport where a fifth of the world’s oil typically passes, was largely closed even though the US repeatedly demanded that it must be reopened.
“(Oil) prices rebounded as fighting in the Middle East continued, and the ceasefire outlook deteriorated, keeping uncertainty around the Strait of Hormuz firmly in focus,” ING Bank analysts Ewa Manthey and Warren Patterson wrote in a note Thursday.
Talks to pursue a permanent end to the war could start in Pakistan on Saturday, and Vice President JD Vance is expected to lead the US delegation. President Donald Trump posted on his Truth Social media platform that US military will remain around Iran “until such time as the REAL AGREEMENT reached is fully complied with.”
Wall Street closed higher Wednesday following Trump’s announcement of a two-week ceasefire with Iran late Tuesday.The S&P 500 jumped 2.5 per cent to 6,782.81. The Dow Jones Industrial Average rose 2.9 per cent to 47,909.92. The Nasdaq composite was up 2.8 per cent to 22,635.00.
Following renewed hopes over de-escalation of the war, shares of United Airlines surged 7.9 per cent on Wednesday, American Airlines was up 5.6 per cent, while cruise ship operator Carnival jumped 11.2 per cent, trimming losses since the Iran war began on concerns over rising fuel costs.
In other dealings, gold and silver prices fell. Gold’s price dropped 0.6 per cent to $4,750.20 an ounce. The price of silver fell 1.7 per cent to $74.08 per ounce.The US dollar rose to 158.95 Japanese yen from 158.57 yen. The euro was trading at $1.1675, up from $1.1663.
