The S&P 500 recovered ground in the afternoon but still ended the day lower, as investors sought cover from the unpredictable effects that the fighting could have on the world economy.
It is not clear who attacked the tanker, Stena Imperative. Its U.S. operator, Crowley, described “aerial impacts” and said that a fire on board was quickly extinguished.
How long prices remain high will depend on what the United States, Israel and Iran do next.
Though the conflict is centered on the Persian Gulf, shipping companies fear that the Iran-backed Houthi militia in Yemen could resume attacks on vessels in the Red Sea hundreds of miles to the west.
The cartel pledged to increase output by 206,000 barrels a day from next month, and said that members would “closely monitor and assess market conditions.”
One of the world’s most vital maritime arteries saw a 70 percent drop in vessel traffic.
The day before nuclear talks were set to resume, Iran conducted live drills in the Strait of Hormuz, a strategic waterway for oil and gas shipments.
The day before nuclear talks were set to resume, Iran conducted live drills in the Strait of Hormuz, a strategic waterway for oil and gas shipments.
The U.S. military tried to intercept the Bella 1 last week in the Caribbean Sea as it headed to Venezuela to pick up oil.
The move is an escalation of military operations and a pressure campaign against Nicolás Maduro, Venezuela’s leader. But its scope and economic impact are not clear.