Oil prices rose and stocks in Asia ticked higher on Tuesday, a day after President Trump set off a drastic market reaction by backing away from a threat to strike Iranian energy infrastructure.
On Monday, crude oil plunged and stocks jumped after Mr. Trump said the United States and Iran were in talks to end the war. Iran denied that negotiations were underway and accused Mr. Trump of issuing false statements to calm rattled energy markets.
Oil prices rise.
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The price of Brent crude, the global benchmark for oil, was about $102 a barrel, up 2 percent. On Monday, Brent fell over 10 percent to settle at $99.94 a barrel, below $100 for the first time in almost two weeks but still almost 38 percent higher since the war with Iran started.
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West Texas Intermediate crude, the U.S. benchmark, was around $90 a barrel, up over 2 percent. It settled on Monday at $88.13.
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Investors and analysts are focused on the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas that normally carries as much as one-fifth of the world’s oil supply. Shipping traffic exiting the Persian Gulf through the strait has been effectively halted since the war began on Feb. 28. More recently, attacks on energy infrastructure, by both Israel and Iran, have raised concerns about longer-lasting damage to the world’s oil and gas supply.
Gasoline goes up again.
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Gas prices went up on Tuesday, jumping to a national average of $3.98 a gallon, according to the AAA motor club. The increase has raised the cost for drivers by 34 percent since the war began.
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Diesel prices have increased even more quickly and stood at $5.35, up 42 percent since the start of the war.
Stocks in Asia were higher.
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Stocks in Asia, where countries import vast quantities of oil and gas, were higher on Tuesday. The Nikkei 225 in Japan rose 1.4 percent, while other benchmarks in South Korea and Hong Kong gained more than 2 percent.
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Futures on the S&P 500 pointed to a lower open when stocks resume trading in the United States on Tuesday. On Monday, the S&P 500 gained 1.15 percent, the index’s best day since the war began.
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