The price of oil jumped after President Trump said in an address from the White House that the war on Iran was “nearing completion” but offered no timeline to end the conflict.
Mr. Trump, in remarks that lasted 19 minutes, said U.S. forces would hit Iran “extremely hard over the next two to three weeks.”
Oil prices jump.
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The price of Brent crude, the global benchmark for oil, was about $106 a barrel, up almost 5 percent. On Tuesday, it settled at $101.16.
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West Texas Intermediate crude, the U.S. benchmark, was around $104 a barrel, up 4 percent. It ended Tuesday at $100.12.
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Investors and analysts have remained focused on the Strait of Hormuz since the fighting began over a month ago. The narrow waterway between Iran and Oman 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.
Stocks fall.
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Stocks in Asia, where countries import vast quantities of oil and gas, were broadly lower on Wednesday, reversing the prior day’s rally. The Nikkei 225 in Japan was down 1.5 percent. Stocks in South Korea were the worst performers, falling 2.6 percent.
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Futures on the S&P 500 pointed to a 1 percent decline when stocks resume trading in the United States on Thursday. The S&P 500 rose 0.7 percent on Wednesday.
Gasoline prices rose.
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U.S. gasoline prices rose again on Wednesday, jumping to a national average of $4.06 a gallon, according to the AAA motor club. The cost for drivers has risen by 36 percent since the war began.
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Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.
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Diesel prices have increased even more quickly, rising to $5.49 on Wednesday, up 46 percent since the start of the war.
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