Wall Street stock indices were mixed on Thursday, following a strong rally in the previous session, as anxieties intensified over the stability of the Middle East truce.
At the opening bell, the Dow Jones Industrial Average fell 69.3 points, or 0.14%, to 47,840.63. The S&P 500 fell 0.9 points, or 0.01%, to 6,783.69, while the Nasdaq Composite rose 11.4 points, or 0.05%, to 22,646.353.
Energy markets reacted sharply, with crude oil prices climbing and the majority of global stock indices retreated on Thursday.
Investors are currently assessing the likelihood of a precarious ceasefire holding and the potential reopening of the Strait of Hormuz, a vital passage for rehabilitating oil and gas deliveries.
The primary US oil benchmark, West Texas Intermediate, recovered by more than 5% to reach near $100 per barrel, while Brent North Sea Crude increased by 3.5% to $98.03 per barrel.
The viability of the truce remains questionable, primarily due to Israel’s persistent military operations against Iran-supported Hezbollah forces in Lebanon. Israeli aerial strikes on Wednesday resulted in over 200 fatalities and more than 1,000 injuries.
Furthermore, Tehran has declared its intention to collect transit fees from vessels navigating through the Hormuz passage.
“Oil prices will likely remain elevated and choppy until a more permanent agreement is struck between all parties,” said Aarin Chiekrie, equity analyst at Hargreaves Lansdown.
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