Surging Crude Oil Prices May Continue To Weigh On Wall Street

The major U.S. index futures are currently pointing to a lower open on Friday, with stocks likely to see further downside following the sell-off seen in the previous session.

A continued surge by the price of crude oil is likely to weigh on Wall Street, as international benchmark Brent crude futures have jumped back above $110 a barrel after soaring by more than 5 percent during Thursday’s trading.

The extended spike by crude oil prices comes even though President Donald Trump extended the pause on attacking Iran’s energy plants by 10 days to April 6th.

Trump claimed in a post on Truth Social that negotiations with Iran are “going very well,” although Iranian state media has said Tehran “responded negatively” to a U.S. peace proposal.

“Comments from Washington and Tehran about a potential peace process seem to come from parallel worlds, with the former indicating talks are going well while the latter effectively denies talks are even happening,” said AJ Bell investment director Russ Mould.

“For now, fighting continues and the path out of the current crisis remains unclear,” he added. “Oil prices, probably the best indicator, remain elevated and have reached $110 per barrel again.”

Mould noted that the longer crude oil prices remain at elevated levels the greater the fear of inflationary pressures returning in a meaningful way.

After coming under pressure early in the session, stocks saw even further downside over the course of the trading day on Thursday, ending the day sharply lower. With the steep losses, the Nasdaq and the S&P 500 dropped to their lowest closing levels since early last September.

The major averages ended the day just off their lows of the session. The Nasdaq plunged 521.74 points or 2.4 percent to 21,408.08, the S&P 500 tumbled 114.74 points or 1.7 percent to 6,477.16 and the Dow slumped 469.38 points or 1 percent to 45,960.11.

The sell-off on Wall Street extended the see-saw trend seen over the past few sessions, as traders reacted to continued volatility by the price of crude oil.

International benchmark Brent crude futures surged by more than 5 percent after tumbling by more than 2 percent during Wednesday’s trading.

The rebound by the price of crude oil comes amid lingering uncertainty about the status of Middle East peace talks. Iran dismissed an American plan to pause the war, insisting that it will only occur on Tehran’s own terms and timeline.

In a post on Truth Social, President Donald Trump described Iranian negotiators as “very different” and “strange” but claimed they are “begging” the U.S. to make a deal.

“They better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty!” Trump warned.

Concerns about further widening of the conflict also weighed on the markets after several Gulf countries issued a joint statement condemning Iran’s “criminal” attacks on their energy infrastructure.

The statement by the U.A.E., Kuwait, Bahrain, Saudi Arabia, Qatar and Jordan specifically calls out attacks carried out by armed factions loyal to Iran from Iraqi territory.

“While we value our fraternal relations with the Republic of Iraq, we call on the Iraqi government to take the necessary measures to immediately halt the attacks launched by factions, militias, and armed groups from Iraqi territory toward neighboring countries,” said the statement.

The Gulf countries reaffirmed their right to self-defense as well as their right to “take all necessary measures to safeguard our sovereignty, security, and stability.”

Computer hardware, semiconductor and networking stocks saw substantial weakness on the day, contributing to the steep drop by the tech-heavy Nasdaq.

Outside of the tech sector, gold stocks moved sharply lower along with the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 3.7 percent.

Steel, housing and airline stocks also showed significant moves to the downside, while oil producer stocks surged along with the price of crude oil.

Commodity, Currency Markets

Crude oil futures are surging $2.42 to $96.90 a barrel after spiking $4.16 to $94.48 a barrel on Thursday. Meanwhile, after plunging $176 to $4,376.30 ounce in the previous session, gold futures are jumping $44.40 to $4,420.70 an ounce.

On the currency front, the U.S. dollar is trading at 159.81 yen versus the 159.80 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1517 compared to yesterday’s $1.1526.

Asia

Asian stocks ended mostly lower on Friday, mirroring steep declines on Wall Street overnight amid lingering geopolitical tensions in the Middle East.

Claiming that talks with Tehran are “going very well,” U.S. President Donald Trump announced he would delay attacks on Iran’s energy infrastructure by an additional 10 days — extending for a second time his deadline for Iran to reopen the Strait of Hormuz.

Trump issued a stark warning to Iran, saying the U.S. will “keep blowing them away” if a deal is not reached.

Trump’s statement followed an earlier report that suggested Iran had rejected a 15-point U.S. ceasefire proposal, calling it one-sided and unfair.

Gold prices rose nearly 2 percent in Asian trading as the dollar dipped from recent highs. Oil prices jumped, with Brent crude futures nearing $110 a barrel as fears of a prolonged energy shock stemming from the conflict in the Middle East persisted.

Chinese and Hong Kong markets reversed early losses after Chinese industrial firms reported stronger profit growth in the January-February period.

China’s Shanghai Composite Index climbed 0.6 percent to 3,913.72 after data showed industrial profits jumped 15.2 percent from a year earlier in the January-February period – extending a sharp rebound from a 5.3 percent jump in December. Hong Kong’s Hang Seng Index rose 0.4 percent to 24,951.88.

Japanese markets ended slightly lower as elevated energy prices and a deepening decline in Treasuries stoked fears about inflation. The Nikkei 225 Index dropped 0.4 percent to 53,373.07, while the broader Topix Index settled 0.2 percent higher at 3,649.69.

Seoul stocks fell modestly as investors weighed mixed signals on the Middle East war against easing concerns over the chipmaking industry. The Kospi Index fell 0.4 percent to 5,438.87.

Chip giant Samsung Electronics closed 0.2 percent lower at 179,700 won after falling nearly 4 percent earlier. Peer SK Hynix slumped almost 5 percent before recovering to end 1.2 percent lower at 922,000 won. AI investment firm SK Square fell 2.5 percent.

Australian markets ended marginally lower to extend losses for a second day running. The benchmark S&P/ASX 200 Index edged down 0.1 percent to 8,516.30, while the broader All Ordinaries Index closed 0.2 percent lower at 8,712.80.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index dipped 0.3 percent to 12,935.39, snapping a two-day winning streak.

Europe

European stocks are seeing further downside on Friday amid fears that a prolonged conflict in the Middle East may fuel inflation and dent economic growth.

The Trump administration extended its pause on military strikes on Iran by 10 days, but the Pentagon is reportedly planning to send 10,000 more troops to the Middle East, hinting at a possible escalation.

In economic news, U.K retail sales decreased for the first time in three months in February, though at a slower-than-expected pace, data from the Office for National Statistics showed.

The seasonally adjusted retail sales volume posted a monthly fall of 0.4 percent in February, reversing a 2.0 percent growth in January, which was the strongest growth since May 2024.

On a yearly basis, retail sales growth moderated to 2.5 percent in February from 4.8 percent in January.

While the German DAX index is down by 1.4 percent, the French CAC 40 Index is down by 0.8 percent and the U.K.’s FTSE 100 Index is down by 0.4 percent.

Among individual stocks, AstraZeneca has rallied after saying its experimental treatment tozorakimab met the main goal in two late-stage trials.

French spirits maker Pernod Ricard has also shown a strong move to the upside after confirming merger talks with Jack Daniel’s owner Brown-Forman.

Meanwhile, GSK shares have fallen. The drugmaker announced that the European Medicines Agency has accepted its marketing authorization application for bepirovirsen.

U.S. Economic News

The University of Michigan is due to release its revised reading on consumer sentiment in the month of March at 10 am ET. The consumer sentiment index for March is expected to be downwardly revised to 54.0 from a preliminary reading of 55.5.

At 11 am ET, Richmond Federal Reserve President Thomas Barkin is scheduled to speak before the Appalachian Highlands Economic Forum.

San Francisco Federal Reserve President Mary Daly is scheduled to deliver introductory remarks before the Macroeconomics and Monetary Policy Conference at 11:30 am ET.

At 11:35 am ET, Philadelphia Federal Reserve President Anna Paulson is due to speak before the Macroeconomics and Monetary Policy Conference.