Oil prices saw a significant increase on Thursday, while global stock markets experienced mixed results amid volatile trading, driven by developments and statements regarding the Iran conflict. European shares managed to recover some losses, following news that Iran was working on an agreement with Oman to monitor the traffic flow in the Strait of Hormuz. However, world oil prices surged by nearly eight percent, with U.S. crude jumping over 11 percent the day after U.S. President Donald Trump’s announcement that the U.S. would take aggressive action against Iran in the near future.
In the financial markets, U.S. stocks closed with a mix of gains and losses on the last trading day before the Good Friday holiday. Gold prices declined as the U.S. dollar strengthened, while government bond yields rose on expectations of potential inflation spikes leading to interest rate adjustments by central banks. The U.S. dollar index, which measures the dollar against a range of currencies, rose by 0.44 percent.
Analysts noted the back-and-forth statements between Tehran and Washington, with some suggesting a possibility of de-escalation. They advised focusing on factual information such as the increased shipping activity through the Strait of Hormuz and Iran’s shift in targeting preferences from Gulf Cooperation Council (GCC) nations to Israeli targets.
The global stocks gauge by U.S. finance company MSCI dropped by 0.35 percent, while on Wall Street, the Dow Jones Industrial Average declined by 0.13 percent, the S&P 500 rose by 0.11 percent, and the Nasdaq Composite added 0.18 percent. Trump’s recent remarks indicated a planned escalation in U.S. attacks on Iran over the next few weeks, contradicting his earlier statement about a swift exit from Iran.
European stock indices and South Korea’s Kospi index faced losses, reflecting market uncertainty. The status of the Strait of Hormuz remained a crucial factor, with analysts closely monitoring developments. Gold prices fell, with spot gold dropping by 1.85 percent and U.S. gold futures settling down by 2.8 percent.
India’s central bank implemented measures to halt the devaluation of the rupee, which resulted in a two percent increase in the currency’s value. Brent futures ended the day up by 7.78 percent at $109.03 per barrel, while U.S. West Texas Intermediate settled with an 11.41 percent gain at $111.54 per barrel. The bond market saw fluctuations, with U.S. 10-year notes experiencing a slight decline in yield, while Eurozone benchmark Bund yields reversed a three-day downward trend, prompting expectations of interest rate hikes.