Oil prices slip, stocks rally as Washington, Tehran bicker over talks
After nearly four weeks of conflict, investors jumped on signs that hostilities could be winding down, with the safe-haven dollar losing support.
Analysts pointed out, however, that the arrival of more US troops in the Middle East and fresh missile strikes between Iran and Israel suggested that the path forward was far from clear.
US President Donald Trump on Wednesday threatened to “unleash hell” if Iran did not strike a deal, but Tehran’s Foreign Minister Abbas Araghchi said his country did not intend to negotiate.
Moreover, an unnamed Iranian military official told local media that Tehran would target shipping in the Red Sea if the Washington launched a ground invasion.
While global shares rose modestly, oil prices dipped as the Brent crude benchmark was down 2.2 per cent at US$102.22 a barrel, while West Texas Intermediate was also off 2.2 per cent at US$90.32 a barrel.
Earlier, crude futures had plunged more than six per cent.
Jack Ablin, from Cresset wealth management, said the stocks rally was driven by investors “really just latching on to any promising news right now.”
The equities push was “really related to oil prices going down and that anticipated end of the hostilities, or at least a settling down of hostilities.”
