Stocks Steady as Oil Pulls Back on Hormuz Talks – Asia Market Wrap
Equity markets steadied and oil surrendered part of its earlier surge after President Donald Trump increased pressure on countries to help restore traffic through the Strait of Hormuz and said the US was in communication with Iran.
Futures tied to the S&P 500 climbed 0.6%, putting the benchmark on track to snap a four-day losing streak, after Trump referenced the discussions. Iranian officials, however, said they had not requested negotiations or a ceasefire. The MSCI All Country World Index — a broad gauge of global equities — was little changed following three consecutive sessions of declines. Asian stocks edged up 0.1%, while European shares were also poised to open higher.
Sentiment was also supported by a softer dollar, with the DXY slipping 0.2%. The currency, which had attracted demand as a haven during the Middle East tensions, weakened against most major counterparts.
Brent crude traded near $104 a barrel after earlier jumping to $106.50 following US strikes on military sites on Kharg Island, the terminal responsible for handling most of Iran’s oil exports. West Texas Intermediate remained below $99 a barrel.
Remarks from Iranian Foreign Minister Abbas Araghchi also helped ease concerns, after he said the Strait of Hormuz had only been closed to vessels from “enemies.” Meanwhile, two tankers carrying liquefied petroleum gas bound for India successfully passed through the waterway, which typically carries roughly a fifth of global oil shipments.
