Oil prices rose Thursday and Friday amid doubts about a ceasefire between the U.S. and Iran, while global stock markets slipped. Initial optimism following a deal to reopen the Strait of Hormuz proved short-lived as Israeli strikes in Lebanon continued and threats of renewed military action emerged.
Crude oil briefly plunged Wednesday with the ceasefire announcement, but quickly climbed back above $97 a barrel as investors bet the truce wouldn’t hold. Oil remains approximately 40% higher than pre-conflict levels, raising concerns about a coming global inflationary spike.
Asian stocks retreated and emerging-market stocks and currencies fell as the shaky ceasefire fueled geopolitical risks. US equity futures also wavered, paring gains from the previous session’s rally. The situation remains volatile with questions surrounding the long-term stability of the agreement.