NEW YORK (AP) — Stocks continued to stabilize on Wall Street after some turbulence earlier this week. A spike in crude oil prices brought on by the war with Iran has been causing disruptions in global markets, but those prices eased early Friday, bringing the benchmark oil price back below $100 a barrel. The S&P 500 rose 0.6% in early trading. The Dow Jones Industrial Average rose 324 points, or 0.7%, and the Nasdaq composite climbed 0.5%. A measure of inflation closely monitored by the Federal Reserve moved higher in January, even before the war with Iran sent energy prices higher.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
HONG KONG (AP) — World shares retreated on Friday while oil prices again popped above $100 per barrel as anxiety remained over the Iran war and its impact on supplies of crude oil and gas.
U.S. futures slipped, with the futures for the S&P 500 and Dow Jones Industrial Average down 0.3%.
In early European trading, Britain’s FTSE 100 fell 0.7% to 10,235.29. Germany’s DAX lost 1% to 23,345.90, while France’s CAC 40 dropped 1.2% to 7,887.18.
In Asian trading, Tokyo’s Nikkei 225 index slipped 1.2% to 53,819.61. Technology-related stocks saw some of the bigger losses, with SoftBank Group falling 4.5%.
South Korea’s Kospi fell 1.7% to 5,487.24.
Hong Kong’s Hang Seng lost 1% to 25,465.60, while the Shanghai Composite index was down 0.8% at 4,095.45.
Australia’s S&P/ASX 200 edged 0.1% lower to 8,617.10.
Taiwan’s Taiex was trading 0.5% lower, and India’s Sensex dropped 1.8%.
Oil prices held steady as Brent crude, the international standard, traded at $101 per barrel. Benchmark U.S. crude was up 0.5% at $96.23 per barrel.
On Thursday, Iran’s new Supreme Leader Ayatollah Mojtaba Khamenei, in his first public statements, vowed Iran would keep fighting and continue to use the Strait of Hormuz — a crucial waterway for oil and gas transport which has been effectively closed with significant marine traffic disruptions — as leverage against the U.S. and Israel.
Roughly 20% of the world’s oil is estimated to flow through the strait, and attacks on ships in or around the strait have already heightened concerns “over the scale of supply disruption and persistent shipping bottlenecks,” wrote analysts at Mizuho Bank in a commentary.
The remarks from Iran’s new leader came after U.S. President Donald Trump said the war was “very complete,” which have raised worries over how much longer the tensions could last. Intense strikes hit Iran’s capital Tehran Friday morning.
Oil prices have been volatile since the Iran war began. While the International Energy Agency said Wednesday its members would make a record 400 million barrels of oil available from their emergency reserves, some economists believe that would do little to reassure markets.
Global inflation will likely worsen as oil prices jump, and rising fuel costs are already starting to hurt consumers globally. Rising energy prices could also, for example, push up AI and chip development and production costs, some analysts say.
Wall Street recorded losses Thursday following volatile swings this month. The S&P 500 dropped 1.5% and the Dow Jones Industrial Average fell 1.6%. The Nasdaq composite shed 1.8%.
Shares at some of the companies heavily reliant on fuel costs saw bigger drops. Cruise-ship operator Carnival fell 7.9%, and United Airlines sank 4.6%.
In other dealings early Friday, gold and silver prices fell. The price of gold fell 0.8% to $5,082.70 an ounce, and the price of silver dropped 3.2% to $82.38 per ounce.
The U.S. dollar rose to 159.43 Japanese yen from 159.34 yen. The euro was trading at $1.1449, down from $1.1512.