Stock values are shown at the Australian Securities Exchange in Sydney on Wednesday. Hollie Adams/Reuters
Today, oil prices are climbing after reports emerged of Iranian assaults on container vessels close to the Strait of Hormuz, occurring just hours after US President Donald Trump prolonged a ceasefire with Iran to provide additional time for peace discussions.
Brent crude, the worldwide oil standard, has risen approximately 0.8% to $99.2 a barrel, after briefly reaching $100 earlier today. WTI, the benchmark for the US, has risen by a comparable amount to $90.3 per barrel.
Today, the United Kingdom Maritime Trade Operations Centre reported that two container vessels were shot at in waters close to the Strait of Hormuz. UKMTO linked one of the assaults to Iran’s Islamic Revolutionary Guard Corps and stated that the crews of the two ships were secure.
Prior to the news of the attacks, analysts noted that Trump’s choice to prolong the ceasefire had boosted trader sentiment, despite the ongoing US blockade on Iranian ports.
“Mohit Kumar, chief European economist at the investment bank Jefferies, stated in a note that both parties have a mutual interest in reaching an agreement.” However, this won’t return oil prices to levels seen before the conflict, he noted, suggesting that prices will probably stabilize at around $75-80 per barrel in the next three to six months.
Stock exchanges, on the other hand, are varied today. In Asia, South Korea’s Kospi, Japan’s Nikkei, and China’s Shanghai Composite indexes ended slightly up, whereas Hong Kong’s Hang Seng dropped by 1.2%. European markets are generally stable, while US futures indicate a modestly stronger start.
“Markets will be weighing the favorable news of an ongoing ceasefire against the other news – peace negotiations are stagnating and the Strait of Hormuz remains shut,” wrote Emma Wall, chief investment strategist at Hargreaves Lansdown, in a note.
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