HONG KONG (AP) — Crude oil climbed back above $97 per barrel while Asian stock markets declined Thursday as investors questioned the durability of a two-week ceasefire between the United States and Iran.
Market watchers expressed doubt about whether the recently announced truce was already unraveling following devastating Israeli attacks in Lebanon that resulted in hundreds of casualties. In response to the Lebanese strikes, Iran once again shut down the Strait of Hormuz shipping corridor.
Japan’s Nikkei 225 index declined 0.9% to close at 55,824.30, while South Korea’s Kospi index dropped 1.6% to finish at 5,776.03.
In Hong Kong, the Hang Seng index slipped 0.4% to 25,801.87, and China’s Shanghai Composite fell 0.7% to 3,965.70.
Australia’s S&P/ASX 200 dipped 0.1%, and Taiwan’s Taiex also retreated 0.1%.
U.S. stock futures pointed to a decline of more than 0.1% at Thursday’s opening.
Energy prices rebounded Thursday, erasing earlier losses that occurred when news of the temporary truce first emerged. Brent crude, the global benchmark, gained 2.4% to reach $97.02 per barrel after briefly dropping below $92 when the ceasefire was initially announced.
West Texas Intermediate, the U.S. oil standard, jumped 3.3% Thursday to $97.50 per barrel.
Concerns about worldwide energy supplies persisted as the Strait of Hormuz remained mostly blocked despite repeated U.S. demands for its reopening. This critical waterway typically handles about 20% of global oil shipments.
Diplomatic efforts to secure a lasting peace agreement could begin as early as Friday in Pakistan, with U.S. Vice President JD Vance anticipated to head the American delegation.
U.S. markets rallied Wednesday after President Donald Trump revealed the two-week ceasefire arrangement with Iran late Tuesday evening.
The S&P 500 surged 2.5% to 6,782.81, while the Dow Jones Industrial Average climbed 2.9% to 47,909.92. The Nasdaq composite advanced 2.8% to 22,635.00.
As optimism grew about potential conflict reduction, airline stocks soared Wednesday with United Airlines jumping 7.9% and American Airlines rising 5.6%. Carnival cruise line shares rocketed 11.2% higher, recovering some losses accumulated since the Iran conflict began amid worries about elevated fuel expenses.
Precious metals declined in Thursday trading, with gold dropping 0.7% to $4,743.20 per ounce and silver falling 1.6% to $74.18 per ounce.
Currency markets saw the U.S. dollar strengthen to 158.66 Japanese yen from the previous 158.57 yen. The euro traded at $1.1668, up from $1.1663.
