Oil Prices Slip Amid Trump's Iran War Doubts

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Oil prices fell for the fourth straight session on the local bourse, with Brent crude down 2.2% to $US76.30, as President Donald Trump raised doubts about the temporary truce in the Iran war, sparking uncertainty in financial markets.

The local sharemarket is likely to do the same when it opens on Friday, with futures pointing to a flat opening and the key S&P/ASX 200 index set to rise a slight 3 points, or 0.03%.

### Oil Price Drop The price drop could worsen inflation, which economists expected would ease with oil prices, and in turn force the Federal Reserve and other central banks to raise interest rates. Higher rates can keep a lid on inflation, but they also slow the economy and hurt prices for all kinds of investments.

### Markets React In the meantime, renewed strength for makers of computer chips and other winners of the boom around artificial-intelligence technology is helping to support stock markets worldwide. In South Korea, whose stock market is dominated by two companies that make semiconductors, the Kospi index rose 0.6% after tumbling 5.3% the day before.

### US Markets On Wall Street, the S&P 500 climbed 0.8%, more than recovered its loss from the day before. The Dow Jones Industrial Average added 0.3%, and the Nasdaq composite rose 1.3%.

### Key Facts

  • Oil prices fell 2.2% to $US76.30
  • Brent crude price was $US78.02 the day before
  • The S&P/ASX 200 index is set to rise 3 points on Friday
  • The dollar is trading at US69.38¢
  • The yield on the 10-year Treasury fell to 4.53% from 4.56% late on Wednesday

### What's Next The upcoming start of earnings reporting season for companies next week is a big event for Wall Street, with the biggest banks set to unveil how much profit they made from April through June. Companies across industries will need to report strong growth to justify the big moves their share prices have made.

### Stock Markets Stock indexes rose across much of Europe and Asia, with the Shanghai index rising 1.7% and the Paris index adding 0.9%. However, Hong Kong's Hang Seng index slipped 0.7% as shares of Apple supplier Luxshare fell 1.5% in its trading debut.

### Conclusion The uncertainty in financial markets will likely continue until the situation with Iran becomes clearer. In the meantime, investors will be watching for any signs of weakness or strength in the market.