On day 10 of the war with Iran, oil began trading above $100 per barrel and briefly reached $119. S&P 500 futures fell over 1% before the New York open; Japan’s Nikkei 225 fell 5.2% and South Korea’s KOSPI fell 5.96%, while the U.K.’s FTSE 100 and the Europe Stoxx 600 declined in early trading.
G7 finance ministers were set to meet at 8:30 a.m. New York time to discuss releasing reserves held by the International Energy Agency, which were described as amounting to a one-month supply.
President Trump posted publicly that short-term oil prices were a “very small price to pay” until “the destruction of the Iran nuclear threat is over.” In the Oval Office the prior week, Trump described a worst-case scenario as a successor in Iran being “as bad as the previous person,” and the situation was characterized as matching that outcome.
The White House also granted India a sanctions waiver allowing it to buy more oil from Russia; Democrats described the waiver in a letter to Treasury Secretary Scott Bessent as an “act of material benefit to the enemy.”