Current:Home > NewsStocks waver and oil prices rise after Israeli missile strike on Iran-LoTradeCoin
Stocks waver and oil prices rise after Israeli missile strike on Iran
View Date:2024-12-24 00:21:23
Stock futures dipped and oil prices rose in overnight trading after an Israeli missile struck Iran following Iran's retaliatory attack on the country last weekend.
Investors are closely watching conflicts in the Middle East for signs that escalating hostilities between Israel and Iran threaten global oil supplies and drive up energy prices.
Crude prices, which rose to their highest level in months after Iran's drone and missile attack on Israel on April 13, rose above $90 early Friday before relinquishing those gains amid signs that the Iranian government was downplaying the impact of the Israeli attack.
"The Iran-Israel conflict has not impacted the flow of oil in the Middle East, which is why oil price reactions to the recent military escalation have been relatively muted," Jim Burkhard, head of research for oil markets, energy and mobility, S&P Global Commodity Insights, said in an email. "However, with no sign that hostilities will de-escalate, direct attacks by Iran and Israel are a new and dangerous phase of mutual antagonism that could yet spillover into the oil market."
Markets were mixed in afternoon trading, with the S&P 500 down 0.9%, the Dow rising 0.4% and the tech-heavy Nasdaq sliding 2%.
In oil trading, U.S. benchmark crude rose was trading 11 cents higher at $82.22 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, gained 7 cents to $87.18 per barrel.
Despite mounting concerns about heightened tensions in the Middle East, Wall Street analysts interpreted Israel's limited strike on Iran and Tehran's measured response as a sign the governments are eager to contain the crisis.
"While geopolitics is going to stay a presence in this market for a while ... we think the events of the last 12 hours in Iran are encouraging, as they will help cool tensions between Israel and Tehran, at least for the time being," Adam Crisafulli of Vital Knowledge said in a note to investors.
"The attack — and the threat of retaliation to it — has increased the risk to physical supply of oil, but the response this morning suggests that some of that risk has already been priced in," Neil Shearing, group chief economist, with Capital Economics, said in a report.
A range of factors has driven up gasoline prices in the U.S. over the last month, with the national average for a gallon of regular now at $3.67, up 21 cents from a month ago, according to AAA. Fuel costs typically rise around this time of year as more motorists hit the road and oil refineries take advantage of milder weather to do necessary maintenance, which can crimp supplies.
Yet while the wars in the Middle East and Ukraine have oil investors on edge, AAA doesn't expect domestic gas prices to spike for now, pointing to a dip in fuel demand between the end of spring breaks around the U.S. and Memorial Day holiday.
—The Associated Press contributed to this report.
- In:
- Stock Market
Alain Sherter covers business and economic affairs for CBSNews.com.
TwitterveryGood! (6983)
Related
- Mike Williams Instagram post: Steelers' WR shades Aaron Rodgers 'red line' comments
- Rafael dissolves into a low pressure system in the Gulf of Mexico after hitting Cuba as a hurricane
- NASCAR Cup Series Championship race 2024: Start time, TV, live stream, odds, lineup
- NASCAR Cup Series Championship race 2024: Start time, TV, live stream, odds, lineup
- Blake Shelton Announces New Singing Competition Show After Leaving The Voice
- What Happened to Kevin Costner’s Yellowstone Character? John Dutton’s Fate Revealed
- Does your dog have arthritis? A lot of them do. But treatment can be tricky
- Are banks, post offices, UPS and FedEx open on Veterans Day? Here's what to know
- American Idol’s Triston Harper, 16, Expecting a Baby With Wife Paris Reed
- NASCAR Championship race live updates, how to watch: Cup title on the line at Phoenix
Ranking
- Harriet Tubman posthumously honored as general in Veterans Day ceremony: 'Long overdue'
- Stocks soared on news of Trump's election. Bonds sank. Here's why.
- Rita Ora Says Liam Payne “Left Such a Mark on This World” in Emotional Tribute
- Are banks, post offices, UPS and FedEx open on Veterans Day? Here's what to know
- Trump has promised to ‘save TikTok’. What happens next is less clear
- Wicked Director Jon M. Chu Reveals Name of Baby Daughter After Missing Film's LA Premiere for Her Birth
- Younghoo Koo takes blame for Falcons loss to Saints: 'This game is fully on me'
- NASCAR Cup Series Championship race 2024: Start time, TV, live stream, odds, lineup
Recommendation
-
Wisconsin agency issues first round of permits for Enbridge Line 5 reroute around reservation
-
Appeals Court Affirms Conviction of Everglades Scientist Accused of Stealing ‘Trade Secrets’
-
4 charged in Detroit street shooting that left 2 dead, 5 wounded
-
Taylor Swift's Mom Andrea Gives Sweet Nod to Travis Kelce at Chiefs Game
-
About Charles Hanover
-
Miami Marlins hiring Los Angeles Dodgers first base coach Clayton McCullough as manager
-
RHOBH's Kyle Richards Shares Reaction to BFF Teddi Mellencamp's Divorce
-
‘I got my life back.’ Veterans with PTSD making progress thanks to service dog program