Oil Surges 6%-7% as Hormuz Tensions Escalate Near U.S.-Iran Truce Deadline
Summary
- Military tensions in the Strait of Hormuz intensified ahead of the truce deadline in U.S.-Iran nuclear talks, sending international oil prices sharply higher.
- June Brent crude futures rose 6.14%% to $95.93 a barrel, while May WTI futures gained 7.35%% to $90.01 a barrel.
- Dow Jones futures, S&P 500 futures, and Nasdaq 100 futures fell 0.6%% to 0.8%%, while the market was still reflecting a risk premium.
Forecast Trend Report by Period
International oil prices jumped sharply as military tensions in the Strait of Hormuz flared again ahead of a truce deadline tied to U.S.-Iran nuclear negotiations. New York stock-index futures, meanwhile, moved lower.
As of 8:30 a.m. in Korea on April 20, June Brent crude futures rose 6.14% from the previous session to $95.93 a barrel. May West Texas Intermediate crude futures climbed 7.35% to $90.01 a barrel.
On April 17, Brent and WTI had tumbled 9.1% and 11.5%, respectively, after reports said the Strait of Hormuz had reopened. Prices turned higher again over the weekend after reports that Iran attacked commercial vessels in the waterway and the U.S. seized ships linked to Iran.
Stock-index futures traded slightly lower. Dow Jones futures, S&P 500 futures and Nasdaq 100 futures were all down 0.6% to 0.8%.
"The market is still pricing in a risk premium ahead of the truce deadline, but it is not fully betting on that risk premium," Harris Kurrshid, chief investment officer at Karob Capital, told Bloomberg.
Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
