Global Markets React to Oil Surge and Mixed Stock Movements

Markets around the world showed a split picture today. While most major stock indices moved only slightly, oil prices jumped over three percent, driven by worries about the ongoing conflict in Iran and its impact on the Strait of Hormuz. In the United States, futures for the S&P 500 and the Dow Jones edged up by less than a tenth of a percent, reflecting cautious optimism as traders await the Federal Reserve’s final decision. The central bank is expected to keep its key rate steady at 3. 6 percent, a level that many officials believe will slow inflation without hurting job growth too much. European stocks moved down modestly. The British FTSE 100 slipped, Germany’s DAX fell a fraction, and France’s CAC 40 dropped slightly. Japan closed for a holiday, so its markets were inactive. Across Asia, South Korea’s main index rose while Taiwan saw a small decline. Hong Kong’s Hang Seng gained more than one percent, and Shanghai also edged up. Australia’s benchmark slipped a touch, and India’s Sensex added nearly one percent.Oil markets dominated the day. A barrel of Brent crude for June delivery rose to $114. 70, a 3. 1 percent increase from the start of the week, while July Brent climbed to $107. 61. U. S. crude followed suit, gaining 3. 4 percent. These gains come after the United Arab Emirates announced its exit from OPEC, a move that could boost global supply if tensions in the Persian Gulf ease. Analysts note that any increase in output will depend on a resolution of the Strait of Hormuz blockade, which currently limits about a fifth of world oil traffic. Iran has offered to reopen the waterway in exchange for lifting U. S. port sanctions, but a deal excluding nuclear concerns seems unlikely. Back on Wall Street, the S&P 500 slipped half a percent and the Dow fell marginally. Technology stocks led the losses, with chip makers such as Broadcom, Nvidia and Micron all falling between three and five percent. Major tech firms will report earnings later in the week. Currency markets saw minor moves: the U. S. dollar rose to 159. 77 yen, while the euro traded just below $1. 17 against the dollar.