S&P Futures faced downward pressure on Thursday as oil prices continued their ascent, driven by concerns over supply disruptions amid the ongoing conflict in Iran. Futures associated with the Dow Jones Industrial Average declined by 213 points, representing a decrease of 0.5%. S&P 500 futures declined by approximately 0.3%, mirroring the movement of Nasdaq 100 futures. Late Wednesday, Energy Secretary Chris Wright announced that the U.S. will release 172 million barrels of oil from the Strategic Petroleum Reserve. The estimated delivery time for the fuel is approximately 120 days. The announcement follows President Donald Trump’s statement in an interview with Cincinnati broadcaster WKRC regarding his intention to utilize the reserve.
Nevertheless, markets faced ongoing pressure as crude prices persisted in their upward trajectory. West Texas Intermediate futures experienced an increase of 4.5%, reaching $91.20 per barrel. Brent crude increased by 4.7% to $96.29, briefly reaching the $100 mark. The S&P 500 and the 30-stock Dow experienced a decline on Wednesday, reflecting investor apprehension regarding the implications of the U.S.-Iran conflict on oil prices. The increase in costs has heightened concerns about inflationary pressures.
Oil prices experienced an increase in the previous session, despite the International Energy Agency’s decision to release 400 million barrels of oil to mitigate the supply disruption stemming from the ongoing conflict. On Tuesday, U.S. forces targeted and sunk 16 Iranian ships involved in mine-laying operations near the Strait of Hormuz, coinciding with ongoing disruptions in oil tanker traffic due to the looming threat of Iranian attacks.
Chubb has been designated as the principal underwriter for a U.S. government initiative aimed at offering insurance to vessels seeking to navigate the strait. The recent developments follow Trump’s assertion earlier this week that the war will conclude “very soon,” which led to a temporary halt in the escalating oil prices that had exceeded $100 a barrel.