Wall Street has been gaining ground despite worries that the U.S. war with Iran is worsening inflation and jeopardizing economic growth. The U.S. and Iran are reportedly working toward a deal to extend a ceasefire. That eased pressure on oil prices. The price for August delivery of Brent crude, the international standard, fell 1.7 per cent to settle at $91.12 per barrel.
It is still well above the $70 per barrel level in late February before the war began. The price for a barrel of benchmark U.S. crude oil for July delivery fell 1.7 per cent to settle at $87.36. Treasury yields held relatively steady as oil prices fell. The yield on the 10-year Treasury slipped to 4.44 per cent from 4.45 per cent late Thursday.
Still, high oil prices remain a key concern for Wall Street. The war has stifled the flow of oil shipments through the Strait of Hormuz. Roughly a fifth of the world’s oil and natural gas is shipped through the waterway. That has pushed up prices for gasoline and a wide range of goods, feeding inflation and squeezing consumers and businesses.
Prices were already rising before the war began from the ongoing impact of tariffs.