Oil Slips on Hormuz Hopes, Raising Stock Futures – Europe Market Wrap
US stock futures nudged higher, although oil prices reversed a rise on optimism that more tankers could cross the Strait of Hormuz, with talks underway to ensure the waterway’s security.
Contracts for the S&P 500 Index climbed 0.7%, marking the underlying gauge’s first gain in five days, as Trump increased pressure on nations to help reopen the critical oil conduit and stated that the US was in talks with Iran. NATO stated that several member nations are discussing Hormuz security with the United Nations and other countries.
While strikes on oil infrastructure kept petroleum trading well above $100 per barrel, prices fell nearly $4 from earlier in the day. Following the passage of two vessels over the weekend, India is hoping to get six more to cross, while numerous other countries are seeking back ways to Iran to assure safe passage for their tankers.
Treasury 10-year rates declined 2 bps after gaining for five consecutive sessions, while the Dollar dipped 0.4% from three-month highs reached last week. Europe’s Stoxx 600 Index rose 0.2%, erasing earlier losses.
While oil prices above $100 per barrel are raising inflation concerns, they are also expected to slow economic growth, creating doubt on how policymakers would respond.
