Stock markets continued to rise on Thursday, as oil prices stabilized on optimism that diplomatic talks could yield a permanent peace deal in the Middle East.
The S&P 500 hit a record high on Wednesday, and is now 2 percent higher than before the fighting began on Feb. 28.
Even though the cease-fire between the United States and Iran is set to expire next week, the two sides have continued to negotiate and the White House expressed optimism about the prospects of a deal.
Oil prices hold steady.
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The price of Brent crude, the global benchmark for oil, was about $95 a barrel on Thursday, little changed from the day before.
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West Texas Intermediate crude, the U.S. benchmark, rose slightly to about $92 a barrel.
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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 that normally carries as much as one-fifth of the world’s oil supply.
Stocks gain globally.
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In Europe, stocks opened mostly higher. The Stoxx 600, a broad index that tracks the region’s largest companies, inched up 0.2 percent and is on track to regain most of the losses it sustained since the war broke out. The FTSE 100 in Britain ticked up 0.2 percent and the DAX in Germany was flat.
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Futures on the S&P 500 pointed to a modest increase when stocks resume trading in the United States on Thursday, pushing the index further into record territory.
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Stocks in Asia, where countries import vast quantities of oil and gas, were broadly higher. Japan’s Nikkei 225 rose nearly 3 percent, while South Korea’s benchmark Kospi Index rose more than 2 percent. Hong Kong’s Hang Seng and mainland China exchanges posted gains.
Gasoline prices pull back.
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Gas prices fell again on Thursday, retreating to a national average of $4.09 a gallon, according to the AAA motor club. The increase has raised the cost for drivers 37 percent since the war began, although prices have come down over the past week.
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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 also fell slightly to $5.61 on Thursday. They are still up about 50 percent since the start of the war.
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