U.S. stock markets showed mixed results, with oil prices climbing back to around $100 a barrel after an initial drop. Investors are on edge about a potentially lengthy conflict with Iran, especially after the White House indicated a temporary easing of sanctions on Russian energy.
By about 11:15 a.m. on Friday, the Dow Jones Industrial Average had gained 141 points, or 0.3%. In contrast, the S&P 500 was nearly unchanged, while the Nasdaq dipped by 0.1%. There was hope that this suspension of sanctions could alleviate rising prices due to Iran’s blockade of the vital Strait of Hormuz, which carries about 20% of global oil supplies.
This “short-term and narrowly defined” suspension is set to last until April 11, focusing only on oil already en route—meaning it likely won’t offer significant benefits to the Russian government.
Brent crude prices crested above $100 again, having briefly fallen to roughly $99, while West Texas Intermediate crude dropped to $94.25.
The national average for gas climbed to $3.63 per gallon, reflecting a more than 20% rise over the last month, according to AAA.
Concerns about an extended conflict with Iran intensified after President Trump mentioned that the U.S. had “plenty of time” for a military engagement.
“We are completely dismantling Iran’s terrorist regime,” he said late at night, adding that if one were to read certain media outlets, they might think otherwise. His comments included an assertion about U.S. firepower and ongoing actions against Iran.
Markets are beginning to recover following a selloff prompted by statements from Iran’s new supreme leader, who vowed to maintain the blockade of the Strait of Hormuz and amplify attacks on oil tankers.
Mojtaba Khamenei, son of the former ruler, stated the blockade should be preserved in light of an apparent attack that reportedly killed or injured family members of the previous leadership.
Recently, it’s been reported that at least six foreign vessels faced attacks in the Gulf, with imagery revealing an oil tanker ablaze underwater.
U.S. forces confirmed they targeted and destroyed multiple Iranian naval ships, totaling 16 minelayers, near the strait.
Experts caution that even if the conflict resolves swiftly, oil prices may still soar due to damaged infrastructure and the time it would take to resume production. Iranian officials have suggested prices might spike to $200 a barrel.
“Be ready for oil prices to hit that $200 mark because the situation in the region is volatile,” remarked Ebrahim Zolfakari, spokesman for Iran’s military command.
In contrast, U.S. Secretary of Energy Chris Wright called the scenario of skyrocketing prices “unlikely,” reflecting some optimism in dire economic forecasts.
Initially, President Trump estimated the conflict could last around four weeks but later claimed the war was “won,” even as he emphasized the need to “finish the job.”
Following the president’s call for full capitulation, Army Secretary Pete Hegseth indicated that the U.S. would do whatever necessary to displace the Iranian regime.
