Oil prices jumped and stocks fell on Monday as President Trump issued a new warning to Iran, calling into question the tenuous cease-fire between Washington and Tehran.
A peace deal has remained elusive, as has the reopening of the Strait of Hormuz, a vital passageway in the Persian Gulf for shipments of a significant portion of the world’s oil and gas.
On Sunday, President Trump posted a new threat on social media. “For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” he wrote. “TIME IS OF THE ESSENCE!”
Oil moves higher.
-
The price of Brent crude, the global benchmark for oil, rose by nearly 2 percent on Monday, trading at about $111 a barrel.
-
West Texas Intermediate crude, the U.S. benchmark, also rose more than 2 percent, to roughly $108 a barrel.
Stocks slide.
-
Futures on the S&P 500 pointed to a decrease of more than 0.6 percent when stocks resume trading in the United States on Monday.
-
Stocks in Asia, where countries import vast quantities of oil and gas, were broadly lower. Stock markets in mainland China, Japan and Taiwan were all down, while South Korea’s benchmark KOSPI rose slightly.
Gasoline prices barely move.
-
Gas prices were almost unchanged on Sunday, staying at a national average of $4.51 for a gallon of regular, according to the AAA motor club. But the cost of the fuel for drivers is up by more than 50 percent since the war began.
-
Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.
-
The average price of diesel fell slightly to just under $5.65 a gallon on Sunday, also up more than 50 percent since the start of the war.
The post Oil Prices Edge Higher as Cease-Fire Remains Tenuous appeared first on New York Times.
