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Oil Modestly Rises, U.S. Stock Futures Cut Early Losses

Oil rates surged and U.S. stock market futures went down late Tuesday after Iran fired Iraq bases, where U.S. troops were located, raising concerns of a Middle East conflict worsening. But overnight electronic markets pared those losses, likely reducing the blow ahead of Wednesday’s trading start.

Photo: Reuters

The attack was interpreted as a revenge operation over events in Baghdad airport, where was killed the Revolutionary Guard Gen. Qassem Soleimani last week. There were followed no immediate report of any casualties, according to U.S. officials statement.  

The oil prices soared immediately after the attack due to concerns over oil supply disruptions in light of  potential violence spreading in already turbulent area. These concerns were softly tempered from the one hand by Iran’s official, saying that they did not seek to sharp escalation and from the other hand by Trump’s tweet that “All is well”. U.S. leader promised to come back with an official statement in the morning, on Wednesday.

After closing comparatively lower for the first time in 3 days during the Tuesday’s trading session, oil rates grew, as it was said higher, after news of the attack. The U.S. WTI futures added 0.91 percent, to reach $63.30 per barrel, jumping earlier as much as 4 percent in electronic trading. The Brent crude benchmark surged by 1.16 percent, to touch $69.06 per barrel at 0808 GMT on Wednesday.

Meantime, one should mention, that Dow Jones futures dropped by 0.41 percent to 28,355, while the S&P 500 and Nasdaq 100 futures eased by 0.13 percent, to 3,225 and 0.33 percent, to 8,809 respectively, reducing also their earlier losses.