Oil prices resume their rise, but U.S. stocks hold steadier this time around
BNN Bloomberg
Oil prices resumed their rise on Tuesday because of the war with Iran, but U.S. stocks held steadier this time around.
The S&P 500 rose 0.2 per cent to add to its gain from the day before, which was its biggest since the war began. The Dow Jones Industrial Average climbed 46 points, or 0.1 per cent, and the Nasdaq composite rose 0.5 per cent.
It’s a break, for now at least, from the usual playbook since the start of the war, where stock prices have tended to go in the opposite direction of oil prices. The fear in financial markets has been that a long-term disruption to the global flow of oil could send prices so high for so long that it damages the global economy. Not only would higher gasoline prices sap households’ budgets, it could also push companies to pass on their own higher transportation costs to customers.
On Tuesday, the price for a barrel of benchmark U.S. crude rose 2.9 per cent to settle at US$96.21. Brent crude, the international standard, climbed 3.2 per cent to US$103.42. But they pared even bigger gains from earlier in the morning, and they’re either roughly where they were at the end of last week or below.
Delta Air Lines offered an encouraging signal about the strength of the economy after raising its forecast for revenue for the first three months of 2026. It said it’s seen demand to fly accelerate into March from both businesses and households.
And that looks to be enough to offset higher prices for jet fuel because of the spike in oil prices. Delta said it still expects to report a profit for the start of 2026 that’s in line with its earlier forecast.
Larry Berman says he can see a day in 2027 when the top 10 stocks in the S&P 500 are 50 per cent of the index similar to the Invesco QQQ Trust Series 1 (QQQ) today that seem destined to move significantly higher.
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Member countries of the International Energy Agency could release more oil into the market later “as and if needed” after they have already agreed the largest-ever reserve release, Executive Director Fatih Birol said on Monday.
Oil prices are down, and stocks are up Monday, though such moves have been quick to reverse since the war in Iran began.
Statistics Canada says the annual rate of inflation dipped below two per cent in February as the end of last year’s federal “tax holiday” helped take some steam out of the yearly price comparisons.
Middle Eastern sovereign wealth funds and state-backed companies are unlikely to scale back renewable energy investments in Africa despite disruptions from the Iran war, analysts say, given the strong long-term economic and strategic reasons driving such funding.
Crude oil stayed above US$100 a barrel on Monday and Gulf countries reported more attacks by Iran as the war entered its third week, while share prices were mixed.
Representatives from Beijing and Washington began their economic and trade talks in Paris on Sunday, Chinese official news agency Xinhua reported.
The impact of the Iran war on fuel prices in Canada may encourage more drivers to go electric, some experts say, but others warn the conflict will drive up prices of "pretty much everything."
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
The Trump administration this week stepped up its ambitious effort to replace about US$1.6 trillion in lost tariff revenue that was eliminated by the U.S. Supreme Court’s decision to strike down a range of the president’s import taxes.
The Bank of Canada will be balancing a last-minute flood of economic data with uncertainty around trade and war in the Middle East as it prepares to make its second interest rate decision of 2026 this week.