Oil prices stabilized Friday as Wall Street futures declined amid escalating tensions in the Middle East, with a Kuwaiti oil refinery targeted in a drone attack by Iran. Futures for the S&P 500 lost 0.3% in pre-market trading, while Dow Jones Industrial Average futures edged down 0.2%, according to reports from the Associated Press and Dallas News.
The attacks, now entering their fourth week, have stoked fears of a wider regional conflict and disrupted global energy markets. Brent crude fell 78 cents to $107.87 a barrel after briefly surging to around $119 earlier in the week following Iranian strikes on a key natural gas field in Israel. U.S. Crude was down 88 cents to $94.67 a barrel.
Israeli Prime Minister Benjamin Netanyahu indicated Thursday he would postpone further retaliatory strikes on Iran’s gas field at the request of U.S. President Donald Trump, a move signaling Washington’s attempt to de-escalate the situation. This followed a period of heightened market volatility triggered by initial attacks by Iran, as reported by investors.com.
The situation unfolded as investors also digested comments from Federal Reserve Chair Jerome Powell earlier in the week, which suggested the central bank may delay anticipated interest rate cuts due to persistent inflation concerns. Wednesday saw the Dow Jones drop 768 points, or 1.6%, to 46,225, while the S&P 500 fell 91 points, or 1.4%, to 6,625, and the Nasdaq lost 327 points, or 1.5%, to 22,152, according to Proactive reporting.
The Strait of Hormuz, a vital waterway for global oil supplies, remains largely closed due to the conflict, raising concerns about potential disruptions to energy shipments. The war’s impact on energy prices is contributing to global inflation worries, according to the Dallas News.
Meanwhile, Micron is scheduled to report corporate earnings after the market close, potentially offering direction for tech stocks. Century Lithium Corp. And Nextech3D.AI also reported positive developments this week, though their impact on the broader market remains to be seen, as noted by Proactive.
The U.S. Administration has not issued a further statement regarding the situation in the Gulf as of Friday morning.
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