Fragile US-Iran Cease-Fire Keeps Oil High and
Markets Volatile
·
President Donald Trump said the US-Iran cease-fire
is on “massive life support” after rejecting Iran’s latest proposal to end the
conflict and reopen the Strait of Hormuz.
·
Investors reacted cautiously as stalled peace talks
increased uncertainty in global markets.
Oil
Prices Rise Again
·
Brent crude, the global oil benchmark, rose more
than 1% to above US$105 per barrel.
·
West Texas Intermediate (WTI), the US benchmark,
climbed 2% to nearly US$100 per barrel.
·
Oil prices remain elevated because the Strait of
Hormuz handles nearly one-fifth of global crude oil shipments, making any
disruption a major risk to energy markets.
Global
Stock Markets Weaken
·
Futures tied to the S&P 500 pointed to a lower
opening for US markets.
·
European markets declined:
o
the STOXX Europe 600 fell about 1%,
o
Germany’s DAX also slipped around 1%,
o
Britain’s FTSE 100 edged lower.
·
In South Korea, the Kospi index dropped more than
2%, partly due to concerns over possible taxation of artificial intelligence
profits.
Fuel
Prices Remain Elevated
·
According to AAA:
o
the US national average gasoline price dipped two
cents to US$4.50 per gallon,
o
but prices are still 51% higher since the conflict
began.
·
Diesel prices remained steady at US$5.64 per
gallon, roughly 50% above pre-conflict levels.
·
Analysts noted that retail fuel prices usually lag
behind changes in crude oil prices by several days.
Inflation
Concerns Grow
·
Investors are closely watching upcoming US
inflation data for signs of how the Iran conflict and rising energy costs are
affecting consumer prices and the broader economy.
President
Trump has declared the American cease-fire with Iran is on “life support,” and investors
are taking a cautious approach as the lack of progress in peace talks weighs on
the markets.
Oil
prices edged higher and global stock markets cooled on Tuesday as investors wavered
between optimism and despair over the stalled peace talks between the United States
and Iran.
President
Trump said on Monday that the cease-fire was “on massive life support” after rejecting
the latest Iranian offer to end the war and reopen the Strait of Hormuz, the vital
waterway through which nearly a fifth of the world’s crude oil is usually carried
on cargo ships.
U.S.
inflation data released later in the day will offer a gauge of how the war is affecting
prices for Americans.
Oil prices climb again.
·
The
price of Brent crude, the global benchmark for oil, rose more than 1 percent on
Tuesday, climbing back above $105 a barrel.
·
West
Texas Intermediate crude, the U.S. benchmark, rose 2 percent to just under $100
a barrel.
Stocks tumble on shaky
cease-fire.
·
Futures
trading on the S&P 500 indicates that the stock markets will open lower on
Tuesday after edging higher on the day before.
·
Stocks
in Europe slid. The Stoxx 600, a broad European index, and the DAX in Germany
slipped about 1 percent. In Britain, where Keir Starmer is fighting for his
premiership, the FTSE 100 edged lower.
·
In
South Korea, the benchmark Kospi index, which has been setting record highs
thanks to artificial intelligence investing, shed more than 2 percent after
talk of a tax on A.I. profits.
Gas prices dip.
·
Gas
prices fell two cents on Tuesday, to a national average of $4.50 for a gallon
of regular, according to the AAA motor club. Despite the decline, drivers are
still paying 51 percent more for gas since the conflict began.
·
Gas
prices don’t move in lock step with changes in crude oil prices, usually
trailing increases or drops by a few days.
·
The
average price of diesel held steady at $5.64 on Tuesday, up 50 percent since
the start of the war.