Stabilization of New York Stock Market and Oil Prices Amid Optimism Over Easing Middle East Tensions
Summary
- With optimism rising over easing tensions between Israel and Iran, the New York stock market was reported to have shown an upward trend.
- Reports that Iran had indirectly conveyed its willingness to return to a ceasefire and nuclear negotiations with the United States spurred a revival of risk appetite.
- On expectations of eased Middle East tensions, international oil prices (Brent crude) turned downward.
Reports of Iran Signaling Willingness to Return to Ceasefire and Nuclear Talks
Brent Oil 1.4%↓
As optimism grew about easing tensions between Israel and Iran, the markets stabilized. The New York stock market rose together, while oil prices declined.
On the 16th (local time), the Dow Jones Industrial Average finished trading at 42,515.09, up 317.30 points (0.75%) from the previous session on the New York Stock Exchange. The S&P 500 index closed at 6,033.11, up 56.14 points (0.94%), and the tech-heavy Nasdaq Composite Index finished at 19,701.21, up 294.39 points (1.52%), respectively.
Amid four consecutive days of military clashes between Israel and Iran, optimism emerged that further escalation might be halted, following reports that Iran had indirectly conveyed its willingness for a ceasefire to the United States.
The Wall Street Journal (WSJ) reported that unless the US participates in Israel's attack against Iran, Iran has informed Arab officials it is open to returning to the negotiating table for nuclear talks. Reuters also cited multiple sources stating that Iran requested Qatar, Saudi Arabia, and Oman—Middle Eastern Gulf states—to exert influence on Donald Trump, the US President, to help broker a ceasefire deal with Israel.
Previously, the Dow index had dropped 1.8% as investor sentiment cooled following Israel's airstrike on an Iranian nuclear facility and Iran's missile retaliation. With risk appetite revived, major technology stocks such as Tesla (1.17%), NVIDIA (1.92%), and Google (1.17%) recorded gains.
Meta Platforms, parent company of Facebook, rose 2.9% on news that its messenger service WhatsApp would introduce advertisements. U.S. Steel jumped 5.1% after the Trump administration approved its acquisition by Nippon Steel.
International oil prices retreated due to optimism over easing tensions in the Middle East. On the ICE Futures Exchange, front-month Brent crude futures closed at $73.23 per barrel, down 1.35% from the previous session.
Brent crude had surged 7% on the 13th after military clashes between Israel and Iran.
Ahn Hye-won, Hankyung.com Reporter anhw@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.
