As US-Iranian Doubts Drive Up Oil Prices, Stocks Decline – Europe Market Wrap
Stocks fell and oil rose as optimism about the US-Iran ceasefire evaporated after Tehran warned that some of the provisions of the agreement had been violated.
US stock futures dropped 0.4%. Brent crude rebounded to $98 per barrel on indicators that the Strait of Hormuz remains effectively closed. The Dollar edged higher, while Treasuries held steady. Emerging-market stocks fell about 1%.
Markets are reversing some of the huge swings seen in Wednesday’s relief surge, fuelled by optimism about a two-week truce. Trump promised to keep US soldiers in the Persian Gulf ahead of negotiations with Iran, but Tehran warned that there could be mines in the strait.
US 10-year Treasury rates were unchanged at 4.29%, while corresponding UK yields increased 6 bps after falling nearly 20 bps on Wednesday. Europe’s Stoxx 600 index dropped 0.6%.
Goldman Sachs analysts stated in a report that if the strait remains blocked for another month, Brent will average more than $100 per barrel through 2026.
