Oil prices jumped and stocks wobbled on Thursday after Iran said it had targeted an American military base in retaliation for U.S. strikes in Iran the day before, marking the second exchange of hostilities in three days between the two countries.
A U.S. official said four Iranian drones it had knocked down on Wednesday posed a threat to American forces in the region and to the little commercial shipping still moving through the Strait of Hormuz, a critical transit route for oil and gas tankers.
The latest confrontation renewed doubts about the prospects of a peace deal, despite continued assurances by President Trump and administration officials that an agreement is close.
Oil prices jump.
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The price of Brent crude, the global benchmark for oil, rose more than 2 percent to about $95 a barrel for August delivery, currently the most heavily traded contract.
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West Texas Intermediate crude, the U.S. benchmark, also jumped more than 2 percent to $91 a barrel for July delivery, currently its most popular contract.
Stocks wobble.
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Futures on the S&P 500 pointed to a modest decline when stocks resume trading in the United States on Thursday.
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Stocks in Asia, where countries import vast quantities of oil and gas, were mostly down. Shares in Japan and South Korea fell half a percent, after recovering from much deeper declines earlier in the day. Stocks in Hong Kong were down more than 1 percent.
Gasoline prices pull back.
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Gas prices fell 3 cents on Thursday to a national average of $4.43 a gallon, according to the AAA motor club. Since the war began, the cost of gas for drivers has risen by nearly 50 percent.
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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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The average price of diesel fell slightly to $5.55 on Thursday, but remains nearly 50 percent higher since the start of the war.
The post Oil Prices Climb on Renewed Hostilities in Middle East appeared first on New York Times.
