Wall Street Rebounds as Oil Prices Steady Despite Renewed U.S.-Iran Tensions
The market's cautious optimism came despite fresh U.S. airstrikes on Iran and Tehran's retaliatory attacks against U.S. allies in the Middle East.
ERBIL (Kurdistan24) – Wall Street edged higher on Thursday while oil prices stabilized, as investors assessed the latest developments in the conflict between the United States and Iran following President Donald Trump's mixed signals over the durability of a temporary truce.
The S&P 500 gained 0.4%, recovering much of the previous session's losses, while the Dow Jones Industrial Average rose 141 points, or 0.3%. The Nasdaq Composite advanced 0.5%, supported by renewed strength in technology and artificial intelligence-related stocks.
The market's cautious optimism came despite fresh U.S. airstrikes on Iran and Tehran's retaliatory attacks against U.S. allies in the Middle East.
Oil prices eased slightly after surging a day earlier. Brent crude, the international benchmark, fell 0.5% to $77.61 per barrel, down from $78.02 on Wednesday but still well above last week's closing price of $71.80.
Investors remain concerned that an escalation of the conflict could disrupt shipping through the Strait of Hormuz, a critical route for global oil exports. Any prolonged disruption could drive energy prices higher, fuel inflation, and complicate efforts by central banks, including the U.S. Federal Reserve, to ease interest rates.
Higher interest rates are typically used to curb inflation but can also slow economic growth and weigh on financial markets.
President Trump, however, sought to reassure markets on Wednesday by saying the recent exchange of attacks was unlikely to lead to "long-term" military action, leaving investors uncertain about the conflict's trajectory.
The recent spike in crude prices has also interrupted the steady decline in U.S. gasoline prices. According to AAA, the average price of regular gasoline increased by five cents overnight to $3.85 per gallon, up 68 cents compared with the same period last year.
Meanwhile, gains in semiconductor and artificial intelligence-related companies continued to support global equities. In South Korea, the Kospi index rose 0.6% after falling 5.3% the previous day, while memory chipmaker SK Hynix climbed 5.3% as it prepared to launch a U.S.-listed share offering.