Oil Falls and Stocks Steady After a Day of Drastic Swings

Markets kept their footing on Tuesday, with oil falling and stocks roughly flat, even as the United States intensified airstrikes on Iran and tanker traffic remained stalled.

“War in theMiddle East Advertisement Supported by A day after the price of oil had spiked to nearly $120 a barrel, the S&P 500 ended Tuesday 0”

New York Times

The S&P 500 ended Tuesday 0.2 percent lower, even as the U.S. bombing campaign of Iran intensified.

New York Times

For over a week, investors around the world have been on high alert for signs of how the war with Iran started on Feb. 28 by the United States and Israel would affect the global economy, particularly because of disruptions to energy production and supply chains.

The price of Brent crude, the global benchmark for oil, spiked to nearly $120 a barrel on Monday before President Trump told CBS News that the war with Iran was "very far ahead of schedule."

New York Times

Investors’ concerns about the conflict's long-term economic fallout were assuaged and the price of oil plunged to below $90 a barrel after his remarks were published; on Tuesday, Brent settled at $87.80 a barrel.

Energy Secretary Chris Wright posted on social media that the U.S. Navy had successfully escorted an oil tanker through the Strait or Hormuz, a post that briefly drove up stocks.

“War in theMiddle East Advertisement Supported by A day after the price of oil had spiked to nearly $120 a barrel, the S&P 500 ended Tuesday 0”

New York Times

Mr. Wright’s post on X was soon deleted, a White House official said no escort had taken place, and stocks pared back their gains.

U.S. government bond yields also rose in response to the deleted post, meaning their price fell.

The episode showed how attuned investors have become to every turn of the Iran war as it moves into its second week, with a potential resolution to stop the fighting and fully restore oil shipments still unclear, despite Mr. Trump’s remarks.

On Tuesday, stocks in Europe rose, with the Stoxx 600 index up almost 2 percent; the price of West Texas Intermediate crude, the U.S. benchmark, was about $89 a barrel.

New York Times