Oil prices fell sharply on Sunday evening as investors watched the latest back-and-forth in the U.S. war with Iran. S&P futures reacted slightly, inching up half a percentage point.
The markets’ moves were the first since President Trump said late Saturday that he had halted a U.S. assault as Iran and allies in the Middle East asked him to pause any new strikes in the war that started five months ago. Mr. Trump, in a post on Truth Social, said that the “perimeters of a deal” are being worked out to open the Strait of Hormuz. For months, the vital waterway for global oil and gas has been effectively closed by Iran.
Earlier on Sunday, the oil cartel known as OPEC Plus approved a modest increase in oil production of around 188,000 barrels a day, in an effort, it said, “to support oil market stability.”
Oil prices drop.
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The price of Brent crude, the global benchmark for oil, fell more than 8 percent as trading began on Sunday, to about $82.95 a barrel.
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West Texas Intermediate crude, the U.S. benchmark, opened more than 5.5 percent lower, about $80 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 tick up slightly.
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Futures on the S&P 500 pointed to a small increase when stocks resume trading in the United States on Monday.
Gasoline prices dip.
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Gas prices fell slightly on Sunday, to a national average of a little over $4.09 a gallon, according to the AAA motor club. The increase has raised the cost for drivers by more than 37 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 was basically flat, at $5.36 a gallon on Sunday, up more than 42 percent since the start of the war.
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