Oil prices extended gains Monday on signs that the war in Iran could last longer.
Hopes of a cease-fire have faded with more U.S. troops arriving in the Middle East and Yemen’s Houthis joining the war. Meanwhile, the Journal reported that President Trump is weighing a military operation to extract Iran’s uranium.
Together, those developments have driven oil prices higher. The U.S. crude benchmark advanced to about $102 a barrel. The most actively traded contract for Brent crude futures rose to around $107, while contracts for May delivery were as high as $116 Monday, reflecting tight supply, before fading back to $112.
U.S. stocks appeared to find a floor after a bruising selloff last week that put both the Dow industrials and Nasdaq composite in correction territory.
The Dow and S&P 500 notched modest gains Monday while the Nasdaq flitted between small gains and losses.
“There’s a certain amount of bargain hunting going on because you’ve seen such steep falls,” said Susannah Streeter, chief investment strategist at U.K.-based Wealth Club, an investment platform for high-net-worth individuals.
Meanwhile, bond yields fell across the globe, as traders shifted their focus from the inflationary effects of the war to its impact on economic growth. The 10-year Treasury slid below 4.35%, while traders slightly pared back expectations of an interest-rate hike.
Write to Caitlin McCabe at [email protected]