NEW YORK (AP) — Doubt is taking over again on Wall Street from hope about a possible end to the war with Iran, and stocks are back to sinking as oil prices rise. The S&P 500 fell 0.8% in early trading Thursday and erased its gain from the day before. The Dow Jones Industrial Average fell 225 points, and the Nasdaq composite lost 1.1%. Stock markets fell even more in much of Asia and Europe. Crude oil prices rose about 4%. They’re the latest flip-flops in an exhausting week that began with President Donald Trump’s announcement of productive talks about ending the war.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Wall Street followed global markets lower and oil prices jumped above $100 per barrel on Thursday as a de-escalation of the Iran war appeared further out of reach.
Futures for the S&P 500 and Dow Jones Industrial Average each fell 0.7% before the opening bell. Nasdaq futures lost 0.8%.
Iran and the United States hardened their positions as a diplomatic push for a ceasefire in the Middle East war appeared to falter on Thursday, sending oil prices back up.
Brent crude, the international standard, rose 3.4% to $100.61 per barrel. It was below $95 on Wednesday. Benchmark U.S. crude was 3.2% higher at $93.25 a barrel.
The rise in oil prices lifted shares of energy producers such as ConocoPhillips and Valero Energy, though the gains were modest at about 1%.
U.S. President Donald Trump has said a deal to end the Iran war is near, even after Tehran dismissed his 15-point ceasefire plan.
Iran issued its own plan via state TV, which includes a halt to killings of its officials, means to make sure no other war is waged against it, reparations for the war, the end of hostilities, and Iran’s sovereignty over the Strait of Hormuz.
Iran also moved to formalize its control over the crucial waterway at Iran's southern border where 20% of all traded oil and natural gas is transported in peacetime. The secretary-general of a bloc of Gulf Arab countries said that Iran is charging fees for ships to safely transit the strait.
Meanwhile, Washington prepared for the arrival of U.S. troops in the region that could be used on the ground in the Islamic Republic.
Elsewhere, at midday in Europe, Britain's FTSE 100 lost 1.3%, France's CAC 40 fell 0.7% and Germany's DAX dropped 1.2%.
In Asia, Tokyo’s Nikkei 225 closed 0.3% lower at 53,603.65. South Korea’s Kospi lost 3.2% to 5,460.46.
Hong Kong’s Hang Seng fell 1.9% to 24,856.43, while the Shanghai Composite index was down 1.1% to 3,889.08.
Australia’s S&P/ASX 200 edged down 0.1%, while Taiwan’s Taiex was trading 0.3% lower.
In other trading early Thursday, gold prices dropped 2.3% to $4,446 per ounce, while silver lost 6.2% to $68 an ounce. That sent the stocks of mining companies such as Newmont Corp. and Freeport McMoRan about 3% lower.
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