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Geopolitics · Inflation · Oil Prices · Stock Futures
U.S. stock futures advanced on Tuesday, with Dow, S&P 500, and Nasdaq futures gaining around 0.7%, as investors reacted to a Wall Street Journal report that President Trump is considering ending the Iran war without reopening the Strait of Hormuz, while Brent crude oil remained elevated above $110 a barrel at $113.39 following an alleged Iranian attack on a Kuwaiti tanker.
The ongoing conflict in Iran, which has seen Tehran block the Strait of Hormuz (supplying 20% of global oil) and target energy facilities, continues to fuel oil price spikes from pre-war levels of $70 a barrel. Despite Trump's reported willingness to wind down hostilities after achieving goals of hobbling Iran's navy and missile stocks, and then pursuing diplomatic solutions for the strait, analysts at Vital Knowledge note investors focus more on actual war developments, including the widening conflict to Yemen's Houthis.
Economically, the U.S. JOLTS report is expected to show 6.89 million job openings in February, down from 6.946 million in January, providing a pre-war labor market snapshot for the Federal Reserve. Eurozone inflation accelerated to 2.5% in March, exceeding the European Central Bank's 2% target, driven by a 4.9% spike in energy costs due to the Iran war, prompting ECB officials to consider interest rate hikes, as noted by ING's Chief Economist Bert Colijn.
