Oil climbs back to $100 after new U.S. strikes on Iran

Oil prices rebounded to $100 a barrel on Tuesday, while stock markets were mixed and the U.S. dollar firmed after U.S. military strikes on Iran dampened expectations of an imminent deal to reopen the Strait of Hormuz.

The United States and Iran have been negotiating an agreement to end the Middle East conflict and reopen the crucial waterway for tanker and cargo traffic since a fragile ceasefire on April 8.

Tehran warned it was ready to retaliate after accusing Washington of breaching the truce, while U.S. Central Command described the strikes as “self‑defence strikes” against missile sites in southern Iran and boats attempting to lay mines.

Stock markets had rallied on Monday, and crude futures fell below $100 a barrel after reports that a deal might be reached within days. That was before U.S. forces announced the attacks.

Brent North Sea crude, the international benchmark, jumped almost 4.5 percent on Tuesday to edge back above $100 a barrel.

Oil price increases had been modest beforehand, “underlining the market’s strong belief that the Strait of Hormuz will reopen,” said Arne Lohmann Rasmussen, a commodities analyst at Global Risk Management.

Equity markets were mixed: the Dow was just off, while the tech‑heavy Nasdaq and the S&P 500 were in the green two hours into trading.

In Europe, Frankfurt and Paris closed down about one percent, with London ending up 0.2 percent ahead as traders returned after a long holiday weekend in Britain.

British oil giant BP topped the losers’ chart, falling more than four percent after it unexpectedly removed Albert Manifold as chairman only months into his tenure, citing “serious concerns” about governance standards, oversight and conduct at the company.

Kathleen Brooks, research director at XTB, warned that Manifold’s departure, coming barely three years after former CEO Bernard Looney was replaced over allegations of misconduct, “suggests a lack of stability at the firm, which is bad news for shareholders.”

AJ Bell investment director Russ Mould focused on the Iran situation, noting that “continued doubts about the potential for a deal and an overnight pre‑emptive U.S. strike on Iran mean any euphoria is being kept in check,” a view echoed by Brooks.

The U.S. strikes occurred as top Iranian negotiators arrived in Doha for another round of talks to end three months of conflict, and as the Israeli military stepped up hostilities with Iran‑backed Hezbollah in southern Lebanon.

In Asia, Seoul’s stock market hit a new record high above 8,000 points as chipmakers, carmakers and shipbuilders continued to outperform.

In Europe, investors were quick to express disappointment at Ferrari’s unveiling of its first electric model, with shares in the Italian luxury carmaker skidding six percent.

– Key figures at around 1550 GMT –

Brent North Sea Crude: UP 4.4 percent at $100.41 a barrel

New York – DOW: DOWN 0.2 percent at 50,467.08 points

New York – S&P 500: UP 0.5 percent at 7,508.30

New York – Nasdaq: UP 0.9 percent at 26,570.41

London – FTSE 100: UP 0.2 percent at 10,491.39 (close)

Paris – CAC 40: DOWN 1.0 percent at 8,173.11 (close)

Frankfurt – DAX: DOWN 0.8 percent at 25,184.89 (close)

Hong Kong – Hang Seng Index: FLAT at 25,599.45 (close)

Tokyo – Nikkei 225: DOWN 0.3 percent at 64,996.09 points (close)

Shanghai – Composite: DOWN 0.2 percent at 4,145.37 (close)

Euro/dollar: DOWN at 1.1620 from 1.1646 on Monday

Pound/dollar: DOWN at 1.3439 from 1.3502

Dollar/yen: UP at 159.36 from 158.90 yen

Euro/pound: UP at 86.47 from 86.25 pence

AFP

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