Iran allowed a total of 10 oil tankers to pass through the Strait of Hormuz this week as a "present" to the United States, President Donald Trump said. Iran made the gesture to show the U.S. "the fact that we're real and solid and we're there," Trump said during a Cabinet meeting.
U.S. stocks were heading lower on Thursday, as uncertainty surrounding when the fighting in the Middle East might ultimately end was still hanging over the market.
Trump expressed confidence in the war effort and said the economic damage will reverse.
Stocks faltered as Brent crude oil hovered around $100 a barrel and traders looked for concrete signals that the Middle East conflict was nearing an end.
The oil market is in backwardation: a phenomenon where futures with near-term deliveries are marketed at a premium over longer-dated contracts. Market watchers spoke to CNBC about what the backwardation says about investors' views on the Iran war, with some warning investors may be underpricing risks.
Oil prices rose after Iran signaled it had no intention of holding direct talks with the United States. Trump said Tuesday the U.S. and Iran are "in negotiations right now" and suggested Tehran is eager to make a deal.
JGBs were mixed in price terms as recent signals that Iran could be open to negotiations with the U.S., together with speculation of a one-month cease-fire, offer some hope, ING said.
Oil rose in early trade on lingering risks of a prolonged U.S.-Iran war.
The U.S. Postal Service wants to impose a temporary 8% fuel surcharge for package and express deliveries to deal with rising transportation costs, which include higher oil prices as a result of the Iran war. If approved by the Postal Regulatory Commission, the surcharge would take effect April 26 and remain in place until Jan. 17, 2027.
The damage to energy infrastructure in the Middle East caused by the war with Iran will take years and billions of dollars to repair, according to Rystad analysts.
At least 40% of Russia's oil export capacity is at a halt following Ukrainian drone attacks, a disputed attack on a major pipeline and the seizure of tankers, according to Reuters calculations based on market data.
Commercial crude oil stocks increased by 6.9 million barrels to 456.2 million barrels last week amid a drop in exports.