Oil prices rose and stocks were mixed on Monday on persistent concerns that surging energy costs stemming from the U.S.-Israeli war with Iran could drive inflation higher across the world.
Oil continues to climb.
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The price of Brent crude, the global benchmark for oil, was at about $106 a barrel on Monday, trading near the day’s highs. On Friday, Brent settled at $103.14 a barrel, the highest settlement level since August 2022. It gained more than 11 percent last week.
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West Texas Intermediate crude, the U.S. benchmark, was around $100 a barrel, after rising 9 percent last week.
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Investors and analysts across the world are focused on the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas, which normally carries as much as one-fifth of the world’s oil supply. Shipping traffic exiting the Persian Gulf through the strait has been effectively halted and tankers are stranded because of the risk that vessels could be attacked.
Global stock markets are mixed.
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Stocks in Asia, where countries import vast quantities of oil and gas, were mixed on Monday. Benchmark indexes fell in Japan but rose in South Korea and Hong Kong.
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Futures on the S&P 500 pointed to 0.6 percent increase when stocks resume trading in the United States later on Monday.
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Last week, stocks fell across the world. The Nikkei 225 in Japan dropped over 3 percent. The S&P 500 lost 1.6 percent, falling for the third straight week for the first time in roughly a year. In Europe, the Stoxx 600 nudged 0.5 percent lower last week and is down 6 percent since the war began.
Gasoline prices are up 25 percent since war began.
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Gas prices rose again on Monday, jumping to a national average of nearly $3.72 a gallon, according to the AAA motor club. The increase has raised the cost for drivers by 25 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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Diesel prices have increased even more quickly and stood at $4.99 on Monday, up33 percent since the start of the war.
The post Oil Tops $106 a Barrel as Worries Persist About Global Supplies appeared first on New York Times.
