Oil prices inched up and stocks dipped on Sunday as the status of the Strait of Hormuz remained unclear, underscoring how challenging it may be to restore energy flows through the region.
Traffic through the narrow waterway appeared to dip after Iran’s military said on Saturday that it was closing the strait over Israel’s continued fighting in Lebanon. The U.S. Central Command disagreed, saying the shipping route remained open.
The reality remained murky on Sunday, when Iran and the United States met in Switzerland for a first round of negotiations aimed at converting a 60-day cease-fire between the countries into something more permanent. The countries have a big gap to close in future negotiations.
Oil edged up.
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The price of Brent crude, the global benchmark for oil, rose 1 percent to a little over $81 a barrel.
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West Texas Intermediate crude, the U.S. benchmark, experienced similar gains, trading above $77 a barrel.
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Investors and analysts are focused on the level of traffic through the Strait of Hormuz, a narrow waterway between Iran and Oman that is a vital energy trading route.
Stocks fall slightly.
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Futures on the S&P 500 pointed to a modest decrease of less than 1 percent when stocks resume trading in the United States on Monday.
Gasoline prices dipped.
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Gas prices fell again on Sunday, to a national average of $3.94 a gallon, according to the AAA motor club. Still, the cost for drivers has increased by 32 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 $5.04 on Sunday, up 34 percent since the start of the war.
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