Investors were closely watching whether a two-week ceasefire between the United States and Iran was already slipping after a round of intense Israeli strikes against Hezbollah terrorists hiding out in Beirut's residential areas in Lebanon. Iran again closed the Strait of Hormuz, in response to the attacks in Lebanon.
In early European trading, Britain’s FTSE 100 fell 0.3% to 10,572.73. France’s CAC 40 dropped 0.8% to 8,198.77, while Germany’s DAX lost 1.3% to 23,771.68.
Asian shares closed mostly lower. Tokyo’s Nikkei 225 dropped 0.7% to 55,895.32, while South Korea’s Kospi lost 1.6% to 5,778.01. Hong Kong’s Hang Seng fell 0.5% to 25,752.40. The Shanghai Composite index was down 0.7% to 3,966.17. Australia’s S&P/ASX 200 edged up 0.2% to 8,973.20. Taiwan’s Taiex was 0.3% higher, while India's Sensex dropped 1.6%.
U.S. futures were down more than 0.4%.
Oil prices were up Thursday, reversing an earlier plunge on optimism over the temporary ceasefire agreement. Brent crude, the international standard, was up 3.5% to $98.09 per barrel. Benchmark U.S. crude was 3.6% higher on Thursday at $97.83 a barrel.
Uncertainties over global energy supply remained. The Strait of Hormuz, a chokepoint for energy transport where a fifth of the world’s oil typically passes, was largely closed even though the U.S. repeatedly demanded that it must be reopened.
Talks to pursue a permanent end to the war could start in Pakistan on Saturday, and Vice President JD Vance is expected to lead the U.S. delegation. President Donald Trump posted on his Truth Social media platform that U.S. military will remain around Iran “until such time as the REAL AGREEMENT reached is fully complied with.”
