NEW YORK — Uncertainty is weighing on Wall Street about a possible end to the war with Iran, and stock indexes are slipping as oil prices rise on Thursday.
The S&P 500 fell 0.4% and gave back most of its gain from the day before. The Dow Jones Industrial Average was edging up by 42 points, or 0.1%, as of 10 a.m. Eastern time, and the Nasdaq composite was 0.6% lower.
Stock markets fell more sharply in much of Asia and Europe. They're the latest flip - flops in a week that began with President Donald Trump's announcement of productive talks about ending the war, which only led to Iran's public dismissal. Iran issued its own plan for a ceasefire, which includes reparations for the war.
On Thursday, the fighting continued. Thousands more U.S. troops neared the region, while Tehran tightened its grip on the crucial Strait of Hormuz. The narrow waterway typically sees a fifth of the world's oil sail through it to exit the Persian Gulf and reach customers worldwide.
A barrel of Brent crude oil climbed 3.8% to $100.93 as hopes dimmed for a potential return to normal for the strait. That’s up from roughly $70 before the war began. Benchmark U.S. crude climbed 3% to $93.05 per barrel.
“They better get serious soon, before it is too late,” Trump said on his social media network about Iran’s negotiators, “because once that happens, there is NO TURNING BACK, and it won’t be pretty!”
The jump in oil prices worsened worries about high inflation and sent Treasury yields higher in the bond market.
The yield on the 10-year Treasury rose to 4.35% from 4.33% late Wednesday and from just 3.97% before the war started. That leap has already sent rates higher for mortgages and other kinds of loans for U.S. households and businesses, which slows the economy.
A report on Thursday morning said slightly more U.S. workers filed for unemployment benefits last week, though the number is still low compared with historical figures.
Usually, a slowing job market can encourage the Federal Reserve to cut interest rates to juice the economy. But hopes have cratered for a possible cut to interest rates this year, even though traders came into 2026 forecasting several. That’s because lower interest rates can worsen inflation, and the worry is centered on the spike in oil prices.
On Wall Street, Meta Platforms and Alphabet were two of the heaviest weights on the market. They had held relatively steady the day before, when a jury found Instagram and YouTube liable in a landmark social media addiction trial.
The financial penalties were small compared with the companies' vast profits, but it could be a watershed moment that invites more lawsuits.
Meta Platforms fell 3.1%, while Alphabet sank 1.4%.
Commercial Metals slipped 0.6% after the maker of steel rebar and other products reported a weaker profit for the latest quarter than analysts expected. CEO Peter Matt said bad weather hurt its North American operations during the quarter, but underlying market conditions looked favorable.
On the winning side of Wall Street were oil and natural as companies, which benefited from a resumption of rising energy prices. ConocoPhillips gained 1.4%.
In stock markets abroad, Germany’s DAX lost 1.6%, Hong Kong’s Hang Seng sank 1.9% and South Korea’s Kospi dropped 3.2%. Japan’s Nikkei 225 had one of the world’s milder losses, at 0.3%.
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AP Business Writers Chan Ho-him and Matt Ott contributed.
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