Oil prices fell further on Tuesday, extending declines spurred by the United States and Iran announcement on Sunday that they had reached a preliminary agreement to end their war. Stocks were mixed after strong rallies the day before.
Oil prices have jumped about 14 percent since Iran effectively closed the Strait of Hormuz in retaliation for U.S.-Israeli strikes on Iran in late February. Hundreds of ships remain stranded in the Persian Gulf unable to transport oil and gas to global markets.
The shipping industry has reacted warily to news of the deal, which the United States and Iran were expected to sign officially on Friday. The text of the agreement has not been released.
Oil drops.
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The price of Brent crude, the global benchmark for oil, was down 2 percent to about $81 a barrel, the lowest level since mid-March.
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West Texas Intermediate crude, the U.S. benchmark, fell 2.3 percent to around $79 a barrel.
Stocks are mixed.
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Futures on the S&P 500 pointed to little change when stocks resume trading in the United States on Tuesday. But SpaceX, which began trading on Friday after its blockbuster public offering, continued to soar, rising 10 percent in premarket trading. That puts Elon Musk’s rocket-and-satellite company on track for a third day of double-digit percentage gains.
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Stocks in Asia were mixed. The Hang Seng Index in Hong Kong was the worst performer, falling 1.4 percent. The Kospi index in South Korea rose 2.1 percent.
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In Europe, stocks rose. The Stoxx 600, a broad-index that tracks the region’s largest companies, was up 0.6 percent.
Gasoline prices fall.
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U.S. gas prices fell three cents on Tuesday to a national average of $4.04 a gallon, according to the AAA motor club. The cost for drivers has still jumped 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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The average price of diesel dipped a penny to $5.19 on Tuesday but is up 38 percent since the start of the war.
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