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US stock futures dip and oil prices rise following US-Iran military exchanges

Crude benchmarks climbed and equity futures fell as regional tensions grew after strikes in the Strait of Hormuz and Kuwait.

The short version

  • U.S. stock index futures slipped while global crude prices rose Thursday amid continuing military clashes involving the U.S. and Iran.
  • Brent crude increased to $97.33 per barrel and U.S. crude gained to $92.92 per barrel, extending an 11% surge on the week.
  • Global bond yields and equity markets experienced fluctuations, while investors await the August U.S. employment report.

Key facts

  • Brent crude climbed 1.8% to $97.33 per barrel and benchmark U.S. crude rose 2.1% to $92.92 per barrel.[ABC News]
  • S&P 500 futures slipped 0.1%, Nasdaq futures fell 0.2%, and Dow Jones Industrial Average futures remained little changed.[ABC News]
  • Iran targeted Kuwait on Thursday following U.S. bombardments earlier in the week, after U.S. forces struck Iranian rocket positions in the Strait of Hormuz on Sunday.[ABC News]
  • The 10-year U.S. Treasury yield eased to roughly 4.77% early Thursday, while the 2-year yield fell to 4.36%.[ABC News]
  • The Japanese yen strengthened against the U.S. dollar, moving from 158.71 yen late Wednesday to 156.07 yen on Thursday.[ABC News]

What remains uncertain

  • The potential for further regional military escalation and its ultimate impact on Middle Eastern energy supply routes remains uncertain.[ABC News]
  • Whether currency authorities will intervene in foreign exchange markets to stabilize the Japanese yen is not yet determined.[ABC News]

Sources