S&P 500 and Nasdaq slip as oil prices surge and Iran conflict fuels uncertainty. US stocks weak today with energy leading and tech stocks under pressure.
Oil is north of $100 per barrel and threatening to go higher in the wake of the ongoing Iraq war, but the impact of the event may not be fully priced in yet according to many in the industry.
Citi sees oil prices reaching as high as $200 in a scenario where disruptions continue through the end of June.
Energy prices are once again moving higher after a big decline on Monday.
India's Reliance Industries , operator of the world's biggest refining complex, has purchased 5 million barrels of Iranian crude, days after the U.S. temporarily removed sanctions on the oil, three sources familiar with the matter said on Tuesday.
Asian stocks have seen heavy foreign outflows so far in March as disruptions to Middle East energy supply from the U.S.-Israeli war with Iran stoked fears of an oil shock and stagflation risks.
The uptick in prices suggests lingering skepticism over a a possible de-escalation in the Middle East conflict, said analysts. The rebound follows a sharp sell-off on Monday, when Brent crude fell about 11%.
Japan plans to start releasing oil from joint stockpiles held by producing nations in the country by the end of March, Prime Minister Sanae Takaichi said in a post on social media website X on Tuesday.
Oil prices rose in early trade on Tuesday on supply fears, as Iran denied it had held talks with the United States to end the war in the Gulf, contradicting President Donald Trump, who said a deal could be reached soon.
Oil futures rose in early trade on a likely technical recovery after WTI and Brent crude futures fell sharply overnight.
Sultan Ahmed Al Jaber, CEO of the UAE's state-owned oil company, said Iran is committing "economic terrorism" by attacking ships in the Strait of Hormuz. Iran's attacks in the Strait are an act of aggression against every nation in the world, Al Jaber said.
Global oil prices edged higher in after-hours trading Monday to recoup portion of the nearly 11% lost during the regular session, as traders geared up for what's likely to be another day driven by developments in the Iran conflict.