Oil prices rose on Friday despite President Trump’s decision to back away from an imminent deadline to begin attacking Iran’s power grid. Global stock markets mostly dipped lower.
On Thursday, after oil jumped to its highest level this week and the S&P 500 had its biggest daily decline since January, Mr. Trump said he would extend the deadline for negotiations by 10 days. He has claimed in recent days that he was making progress to end the Middle East war, which has choked critical supplies of energy.
The S&P 500 is on course for its fifth-straight week of losses for the first time in four years. The war also continues to pressure bond yields, raising concerns over housing affordability and inflation generally.
Oil rises.
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The price of Brent crude, the global benchmark for oil, rose to about $110 on Friday. It jumped roughly 5.7 percent, to $108.01, on Thursday.
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West Texas Intermediate crude, the U.S. benchmark, was just under $96 a barrel. On Thursday, it settled at $94.48.
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Investors and analysts have been focused on the Strait of Hormuz, the narrow waterway between Iran and Oman that is a vital trading route for oil and natural gas that 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 since the war began on Feb. 28, leading to a spike in energy prices and concerns about lasting damage from the war.
Stocks fall.
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In Europe, stocks were slightly lower. The Stoxx 600, a Pan-European index, fell 0.4 percent. The FTSE 100 in London slipped 0.3 percent.
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Futures on the S&P 500 pointed to a flat open when stocks resume trading in the United States.
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Stocks in South Korea and Taiwan fell about 0.5 percent. The Nikkei 225 in Japan dropped 0.4 percent. Stocks in Hong Kong and China closed about 0.5 percent higher.
Gasoline prices stayed flat.
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U.S. gas prices ticked down less than a penny on Thursday to remain around a national average of $3.98 a gallon, according to the AAA motor club. It was the first day the price did not increase since the war began, leaving the cost for drivers up 34 percent in that period.
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Diesel prices have increased even more quickly, rising to $5.38, up 43 percent since the start of the war.
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