Oil prices surge after the attack on the Strait of Hormuz, Wall Street futures decline

Investing.com - U.S. stock index futures declined Wednesday evening, while oil prices continued their sharp rise. Shipping near the Strait of Hormuz was hit by a new round of attacks, raising concerns about further supply disruptions in the global energy market.

As of 20:34 Eastern Time (00:34 GMT), S&P 500 futures fell 0.9% to 6,721.75, and Nasdaq 100 futures also dropped 0.9% to 24,760.75. Dow futures declined 1% to 46,964.0.

Use InvestingPro for real-time advanced market analysis

During regular trading hours, Wall Street closed mostly lower on Wednesday. The Dow Jones Industrial Average fell 0.6%, while the S&P 500 closed down 0.1%. The Nasdaq Composite barely rose 0.1%.

Supply disruptions cause oil prices to surge again

In Thursday’s Asian trading session, oil prices surged over 7%, after reports that two international oil tankers were attacked near the Persian Gulf off Iraq and Kuwait.

These incidents follow a series of attacks on ships passing through the Strait of Hormuz recently, heightening market fears of potential supply disruptions on one of the world’s most critical oil transportation routes.

Although the International Energy Agency agreed to release 400 million barrels from emergency reserves to stabilize global supply, escalating conflicts continue to push crude oil prices higher.

U.S. President Donald Trump also announced on Wednesday that the U.S. would release about 172 million barrels from strategic petroleum reserves in an effort to lower oil prices.

Despite these measures, Iranian officials warned that if conflicts and shipping disruptions worsen, the world should prepare for oil prices to reach as high as $200 per barrel.

CPI remains stable; awaiting PCE inflation data

Investors are also digesting the latest U.S. inflation data. The Consumer Price Index for February rose 0.3% month-over-month, with the annual inflation rate holding steady at about 2.4%, in line with economists’ expectations.

While the data shows inflation pressures remain relatively stable, traders remain cautious given that rising energy prices could impact future inflation figures.

The market is currently awaiting the weekly initial jobless claims report due Thursday and the Personal Consumption Expenditures (PCE) price index released on Friday, which is the Federal Reserve’s preferred inflation indicator.

These data points could provide further clues about the health of the U.S. labor market and the path of monetary policy.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.