Oil Rises as Hostilities Escalate Between Iran and Israel
Oil prices rose on Monday after Iran and Israel exchanged strikes, casting fresh doubt on the future of a fragile cease-fire in the Middle East and stoking fears of an escalation in violence.The strikes came after Israel attacked the outskirts of Beirut, targeting Hezbollah, the Iranian-backed militant group.Iran retaliated by firing a barrage of ballistic missiles, which prompted a counterattack from Israel.
The attack and counterattack are the first such hostilities since a cease-fire paused the war with Iran two months ago.President Trump said on Monday that Israel and Iran should “immediately stop” the strikes and suggested that a more enduring peace deal was in the works.The rise in oil prices moderated somewhat during a lull in the fighting.Oil prices rise.The price of Brent crude, the global benchmark for oil, settled over 1 percent higher at $94.25 a barrel.West Texas Intermediate crude, the U.S.
benchmark, settled 0.8 percent higher at $91.30 a barrel.Stocks stabilize after tumbling in Asia.Stocks in Asia, where countries import vast quantities of oil and gas, were broadly lower.After a sharp decline when markets opened and a temporary halt in trading, South Korean shares clawed back some of their losses, with the index closing 8.3 percent lower.
Japan’s Nikkei 225 fell 3.9 percent.The S&P 500 rose 0.3 percent on Monday.The modest bounce came after a big drop on Friday, which ended a long streak of weekly gains in the benchmark index.In Europe, stocks were mixed, with the Stoxx 600, a broad index that tracks the region’s largest companies, nudged lower.Gasoline prices pull back.Gas prices fell on Monday, slipping by a penny to a national average of $4.16 a gallon, according to the AAA motor club.
Still, gasoline prices have risen nearly 40 percent since the war began.Gas prices don’t move in lock step with crude, usually trailing increases or drops by a few days.The average price of diesel fell two cents to $5.32 on Monday, up more than 40...