US Stocks Edge Up Amid Iran War Tensions and Oil Surge
The price for a barrel of benchmark U.S. crude rose 0.8% to settle at $112.41 after erasing an earlier modest dip. Brent crude, the international standard, added 0.8% to $109.77 per barrel and remains well above its roughly $70 price from before the war. Oil prices rose after seesawing amid uncertainty over the war with Iran, which threatens global oil and natural gas flows. Iran rejected the latest ceasefire proposal, demanding a permanent end to the war with guarantees against future attacks. Fighting persisted, including an Israeli strike on an Iranian petrochemical plant, as a Trump deadline looms for opening the Strait of Hormuz?a key route for one-fifth of the world's oil.
U.S. stocks reacted positively to stronger-than-expected jobs data, with unemployment improving unexpectedly. Gasoline prices have surged to $4.12 per gallon nationwide, up from below $3 before the late-February war start. Oil-importing nations face even steeper pain due to blockages in Persian Gulf crude exports via the strait. On Wall Street, a split performance for the Big Tech stocks that dominate the U.S. market kept things in check. Apple rose 1.1%, and Amazon added 1.4%. Tesla slid 2.2% and Microsoft fell 0.2%. Bank stocks were strong, including a 1.3% rise for JPMorgan Chase.
In stock markets abroad, Japan?s Nikkei 225 added 0.5% and South Korea?s Kospi jumped 1.4%. Many other markets in Europe and Asia were closed for holidays.
In the bond market, Treasury yields held relatively steady. The 10-year Treasury yield was sitting at 4.33% still well above its 3.97% level from before the war. The rise has pushed up rates for mortgages and other loans going to U.S. households and businesses which slows the economy.
