Surging crude prices are dragging on US futures after President Donald Trump rejected Iran’s proposal to reopen the Strait of Hormuz.
Iran had offered to reopen the strait and resume talks on its nuclear programme if the US lifts its naval blockade of Iranian ports, waives sanctions on Iranian oil sales and observes a ceasefire that would include Lebanon.
But on Saturday, Trump rejected the proposal saying Iran wanted to make a deal because it was “losing so badly.”
Futures for the S&P 500 and the Dow Jones Industrial Average both declined 0.5% Monday. Nasdaq futures dropped 1%.
Brent crude, the international standard, rose 3.6% to $100.98 a barrel for delivery in December. But there is a red flag when compared with the contract for November delivery, or oil that buyers want right now. The price for a barrel of oil delivered more quickly is nearly $108, suggesting high anxiety over supply after Trump’s rejection of a deal to get crude moving again.
Benchmark US crude jumped 4.2% to $96.26 a barrel. The spread between November and December delivery is broad in the US as well.
