Oil Climbs Higher, Stock Recovery Fades as Doubts Cloud Cease-Fire Hopes

By Dow Jones Newswires Staff

Oil crept higher and a cautious premarket stock recovery collapsed as nervous traders doubted the likelihood of a near-term resolution to the Middle East conflict.

President Trump's extension to U.S. pause on attacks against Iranian energy infrastructure had buoyed markets. But a report from The Wall Street Journal that the Pentagon is considering sending 10,000 more ground troops to the Middle East helped pour cold water on positive sentiment as Brent crude oil contracts for May delivery pushed above $110 a barrel.

Yields on U.S. Treasurys tracked higher and 10-year German bund yields hit their highest levels since 2011 amid the fallout from the Eurozone crisis. U.S. stock futures were higher on Trump's postponement but fell back, as higher oil prices were compounded by news that China launched a pair of investigations into U.S. trade practices.

G7 foreign ministers including U.S. Secretary of State Marco Rubio meet in France as U.S. allies seek clarity on the Trump administration's position on the Middle East conflict and Ukraine.

--In early European trading, Brent crude for May delivery rose 2.2% to $110.35 a barrel, while WTI was up 2.3% to $96.64 a barrel. "The Middle East conflict remains unresolved, with continued strikes and no meaningful progress on reopening the Strait of Hormuz, keeping the risk premium in energy markets firmly intact," analysts at Sucden Financial said.

--U.S. stock futures were largely flat after the Nasdaq entered correction territory Wednesday and, alongside the S&P 500, suffered its biggest one-day decline since the Iran war began. Futures tied to all major indexes were flat after previously climbing on President Trump's 10-day postponement to U.S. attacks on Iranian energy infrastructure.

--Asian equities came off their lows for the day to be mixed in Friday afternoon trade as investors weighed the latest round of developments in the Middle East. Malaysia said Iran had allowed some of its tankers to pass through the strait, signaling that other Asian countries may try the same approach after Indian vessels were also granted passage. South Korea's Kospi ended 0.4% lower and Japan's Nikkei Stock Average was down 0.4%. Hong Kong's Hang Seng Index rose 0.4%.

--European equities mostly fell in nervous early exchanges as traders weighed contradictory headlines around the war in the Middle East. Blue-chip indexes oscillated between positive and negative territory in the opening 15 minutes of trading before moving lower, as the Europe-wide Stoxx 600 slipped 0.2%. Germany's industrial-heavy DAX is 0.6% lower as oil pushed higher in the European morning. In Paris, the CAC 40 edged down 0.2%, though Pernod Ricard climbed 3.1% after the group confirmed it was exploring the acquisition of Jack Daniel's owner Brown-Forman. AstraZeneca climbed 3.2% on positive drug trial news, helping London's FTSE 100 edge 0.1% higher. Italy's FTSE MIB was 0.05% lower, while the Spanish IBEX 35 edged down 0.3% as consumer-sensitive stocks slid.

--The dollar turned higher as doubts over an imminent resolution to the Middle East conflict boosted safe-haven assets. Barring some conciliatory words from Iran, which seems unlikely, the dollar should remain supported and risky assets vulnerable, ING's Chris Turner said. The DXY dollar index rose 0.1% to a four-day high of 100.028.

Sterling remained weaker against the dollar and the euro even after data showed U.K. retail sales fell less than expected in February.

--Ten-year U.S. Treasury yields rose to their highest in eight months. Yields have recently pushed higher even when equity markets have struggled due to concerns about rising inflation and the potential for higher-for-longer interest rates, Hargreaves Lansdown's Matt Britzman said. The two-year U.S. Treasury yield rose 3.7 basis points to 4.019% while 10-year yields were up 4.2 basis points to a high of 4.457%, its highest since July 2025.

U.K. ten-year gilt yields rose above 5% and Eurozone bond yields tracked higher. The 10-year German Bund yield climbed to 3.093%, the highest level since 2011 and up 3.7 basis points on the day.

--Bitcoin fell back below $70,000 as fading hopes of Middle East de-escalation fed risk-off sentiment. The cryptocurrency fell 0.1% to $68,739, LSEG data show.

--Gold prices rose 1.6% in New York to $4,445.40 a troy ounce, but were 3.5% down on the week in early trading. "The recent price action highlights how gold, during a supply-driven macro shock, has shifted into a source of liquidity-behaving more like a risk asset and moving in line with broader market stress, thereby failing to provide traditional safe-haven support," Saxo Bank analysts said in a research note.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

March 27, 2026 06:04 ET (10:04 GMT)

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