Oil prices retreated and stocks rallied on Friday after President Trump called off plans for another day of strikes on Iran, saying that a peace deal could be within reach.
The gains in Asia followed a strong rally on Wall Street on Thursday. Mr. Trump had threatened a third straight day of strikes on Iran before canceling the operation and saying that an agreement could be signed as soon as this weekend. Iran’s state broadcaster, quoting the spokesman for the country’s foreign ministry, said “nothing has been finalized.”
Oil pulls back.
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The price of Brent crude, the global benchmark for oil, fell more than 1 percent, to about $89 a barrel.
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West Texas Intermediate crude, the U.S. benchmark, was around $87 a barrel, also down 1 percent.
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Investors and analysts are focused on the continued disruption to shipping in the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas and that normally carries as much as one-fifth of the world’s oil supply.
Stocks surge in Asia.
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Futures on the S&P 500 pointed to a modest increase when stocks resume trading in the United States on Friday.
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Stocks in Asia, where countries import vast quantities of oil and gas, were higher across the board. South Korea’s benchmark KOSPI rose more than 8 percent, while stock markets in Japan rose nearly 4 percent. Shares were broadly higher in mainland China, Hong Kong and Taiwan.
Gasoline prices fall.
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Gas prices dropped two cents on Thursday, falling to a national average of $4.13 a gallon, according to the AAA motor club. Gas prices have risen by nearly 40 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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The average price of diesel fell to $5.28 on Friday, up 40 percent since the start of the war.
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