US shares sank Thursday morning as oil jumped back close to $100 after Iran accused the US of violating its ceasefire settlement and visitors through the Strait of Hormuz remained restricted.
The Dow Jones Industrial Average slumped 128 factors, or 0.3%, by roughly 9:35 a.m. ET, while the S&P 500 and Nasdaq each fell 0.1%.
Brent crude oil costs jumped 3.9% to $98.42, while West Texas Intermediate crude rose 4.6% to $91.74.
US shares sank Thursday morning as oil jumped back close to $100 a barrel. AFP via Getty Images
National average gasoline costs, which usually lag motion in oil benchmarks by a few weeks, continued to climb above $4 a gallon – hitting $4.17 on Thursday, according to AAA.
It was a sharp turnaround from the earlier day, which saw the Dow clinch its greatest gain since April 2025 while oil costs eased down close to $95 a barrel after President Trump announced a two-week ceasefire with Iran.
Trump emphasised that the ceasefire was contingent on the reopening of the Strait of Hormuz, a important maritime route for 20% of the world’s oil provide – but Iran is still reportedly blocking many ships from passing through the waterway, blaming it on a damaged settlement.
Late Wednesday, Iran accused the US of breaking a joint ceasefire settlement as Israel launched a huge blitz on Tehran-backed Hezbollah in Lebanon.
“Now the very ‘workable basis on which to negotiate’ has been openly and clearly violated, even before the negotiations begin,” Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, wrote in a assertion on X. “In such [a] situation, a bilateral ceasefire or negotiations is unreasonable.”
Iran has also reportedly been looking for tolls as high as $2 million per ship for secure passage through the strait, which could further complicate the free move of crude through the Persian Gulf.
Iran is still reportedly blocking many ships from passing through the Strait of Hormuz. Anadolu via Getty Images
When requested about the concept on Wednesday, Trump informed ABC News that he’s open to the idea as long as the US gets a cut of the motion, calling it “a beautiful thing.”
Traders are hedging their enthusiasm as vitality consultants warn that even if the strait stays totally reopened, it could still take months for international provides to normalize – and US gasoline costs will probably keep high through the summer season.
Despite the non permanent peace settlement, tensions remained high as Trump threatened to unleash a “bigger, and better, and stronger” army assault on Tehran if it violates the deal.
A view of the vessels passing through the strait on Wednesday. Anadolu via Getty Images
In a Truth Social post late Wednesday, Trump confirmed that US army forces will stay in the Middle East until Iran totally complies with a deal.
Vice President JD Vance is scheduled to lead the US delegation in talks with Iran on Saturday in Islamabad, alongside Pakistani mediators.
