Oil prices climbed back toward $100 per barrel yesterday, while stock markets worldwide slow following their big gains from the day before.
The S&P 500 was nearly unchanged in midday trading as the United States, Iran and Israel disagreed on the details of their two-week ceasefire, whose announcement had sent markets flying in optimism on Wednesday.
The oil market was jumpier, and the price for a barrel of benchmark U.S. crude oil climbed 7.6% to $101.54. It rose after semiofficial news agencies in Iran suggested forces have mined the Strait of Hormuz, the narrow waterway that has been at the center of President Donald Trump’s demands of Iran.
Given how far apart the United States and Iran seem to be in their demands, upward pressure on oil prices may be “here to stay for a while” according to strategists at Macquarie led by Thierry Wizman.
Risks remain for renewed fighting, which could cause customers worldwide to hoard whatever oil supplies they do get. That could itself keep oil off the market, much like actual fighting targeting pipelines or oil tankers.
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