Oil prices jumped on Thursday after the United States and Iran exchanged fire for a second straight day, heightening fears that the two countries could slide back into open conflict.
The United States said it had struck multiple targets across Iran after President Trump vowed to maintain military pressure because negotiations with Iranian leaders over its nuclear program were moving too slowly. Iran said it retaliated with two waves of attacks on targets at U.S. airbases in Kuwait and Bahrain, though there was no immediate confirmation of the strikes.
Despite the escalating tensions, oil markets had remained relatively subdued in recent days, showing little reaction since the downing of a U.S. Army Apache helicopter near the Strait of Hormuz on Monday.
Oil gains.
-
The price of Brent crude, the global benchmark for oil, rose nearly 2 percent to about $95 a barrel.
-
West Texas Intermediate crude, the U.S. benchmark, was around $92 a barrel, up 2 percent.
-
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
-
Futures on the S&P 500 pointed higher when stocks will resume trading in the United States on Thursday.
-
Stocks in Asia, where countries import vast quantities of oil and gas, were mostly lower in early trading. Shares in Taiwan opened about 1 percent, while Japan’s Nikkei 225 and South Korea’s benchmark KOSPI were also lower.
Gasoline prices pull back.
-
Gas prices edged lower on Wednesday, falling to a U.S. national average of $4.15 a gallon, according to the AAA motor club. Gas prices have fallen 40 percent since the war began.
-
Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.
-
The average price of diesel dropped to $5.30 on Wednesday, up 41 percent since the start of the war.
The post Oil Prices Rise as U.S. Launches New Attack on Iran appeared first on New York Times.
