NEW YORK (AP) – Oil prices are once again above $100 a barrel and stock markets are falling globally after 21 hours of ceasefire talks failed to end the war with Iran. But Monday’s moves were modest compared to many of the extreme swings that have rocked financial markets since the war began in late February. Analysts said this suggests Wall Street remains hopeful that the two countries can eventually avoid the worst-case scenario for the global economy. The S&P 500 fell 0.2%. The Dow Jones Industrial Average fell 238 points, and the Nasdaq Composite Index fell 0.2%. Oil prices moved further, rising 7%
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NEW YORK (AP) – Oil prices once again soared above $100 a barrel as the U.S. military prepares to block Iranian ports and traffic to and from Iran, with Wall Street appearing to follow the fall in global markets on Monday. Strait of HormuzSince the war began, most transportation has stopped.
Futures for the S&P 500 and Dow Jones Industrial Average each fell 0.7% before the opening bell. Nasdaq futures fell 1%.
President Donald Trump then announced plans for a lockdown. Ceasefire negotiations between the US and Iran The military conflict in Pakistan ended without a deal, and the U.S. military announced that a blockade involving all Iranian ports would begin at 10 a.m. Eastern Daylight Time on Monday, or 5:30 p.m. in Iran.
Iran reacted immediately All ports in the Persian Gulf and Gulf of Oman are under threat.
“Security in the Persian Gulf and the Sea of Oman is for everyone or for no one,” Islamic Republic of Iran Broadcasting reported on Monday. A statement from Iran’s military and Revolutionary Guards said “ports in the region are not safe.”
Since late February, shipping through the strait has virtually stopped, causing oil prices to soar. Brent crude oil, the international standard, was around $70 per barrel in late February before the war, but it sometimes exceeded $119.
On Monday, benchmark U.S. crude oil rose $7.69, or about 8%, to $104.26 a barrel. This is a 55% increase since the Iran war began. Brent crude oil, the international standard crude oil, rose $7.02 (7.4%) to $102.22 per barrel.
This week, major U.S. banks begin reporting their quarterly results.
Goldman Sachs fell 4.3% even though second-quarter profit and revenue beat Wall Street expectations. The New York investment bank said its fixed income, currency and commodity trading revenue fell 10% from the first quarter.
Investors have also been wary of large banks’ exposure to private credit in recent months, as well as the uncertainty facing the U.S. and global economies due to the Iran war and rising energy costs.
JPMorgan, Wells Fargo, Citigroup and Bank of America will all release reports later this week, as will Johnson & Johnson, Netflix and PepsiCo.
The latest U.S. housing market data will be released later Monday. Analysts expect existing home sales to decline slightly from February to March after interest rates rise. rose for 5 consecutive weeks It was the highest level in seven months.
In European markets, as of midday, France’s CAC40 index was down 1.1%, Germany’s DAX index was down 1.2%, and Britain’s FTSE100 index was down 0.7%.
In Asia, Japan’s benchmark Nikkei stock average fell 0.7% to end at 56,502.77. Australia’s S&P/ASX 200 fell 0.4% to 8,926.00. South Korea’s Kospi fell 0.9% to 5,808.62. Hong Kong’s Hang Seng Index fell 0.9% to 25,660.85, while the Shanghai Composite Index was little changed, rising less than 0.1% to 3,988.56.
Analysts said global trade is expected to remain disrupted for some time.
“The outcome of the talks was not what people expected, that’s for sure,” Neil Newman, marketing director and head of strategy at Astris Advisory Japan, said in Hong Kong.
“As we stand here at the moment, it’s not a very good situation. Certainly, oil prices are a big concern.”
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AP journalist Mayuko Ono contributed to this report.
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