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US stock futures retreated on Thursday as oil prices pressed higher amid signs the Iran war is widening across the Middle East to further threaten disruption to energy supplies.
Dow Jones Industrial Average futures (YM=F) were down 0.7%, following a second straight mostly down day on Wall Street. Contracts on the S&P 500 (ES=F) and Nasdaq 100 (NQ=F) both fell 0.6%, as stocks pared earlier morning losses of about 1%.
Energy markets continue to be roiled by the fallout from the escalating conflict between the US, Israel, and Iran, after President Trump said Wednesday that the US is seeking to “finish the job” in the immediate future. Tanker traffic across the region has been effected following attacks on two tankers in the Iraq Ports loading area, leading to the closure of Iraqi ports.
Crude prices jumped, with both West Texas Intermediate (CL=F) crude and Brent (BZ=F) crude rising above $100 in overnight trading, before retracing some losses early Thursday morning. The rally came despite an announcement from the International Energy Agency that member countries would release a record amount of roughly 400 million barrels of oil.
Investors are also watching several economic releases after receiving the first of two inflation readings on Wednesday. February’s Consumer Price Index showed consumer prices rose 0.3% over the previous month and 2.4% year over year, in line with expectations. The latest reading of the Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge, arrives Friday.
In earnings, Adobe (ADBE) and Dollar General (DG) highlight Thursday’s docket, reporting after the market close.
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Premarket trending tickers: PetCo, travel stocks, and Honda
Petco (WOOF) stock rose 7% during premarket hours on Thursday after the company reported sales in line with analysts’ estimates on Wednesday.
Travel stocks edged lower on Thursday before the bell, with Southwest Airlines (LUV), Carnival Cruiseline (CCL) and American Airlines (AAL) all falling roughly around 2%. Travel stocks have been impacted by the Iran war, as oil prices rise due to the blockage of the Strait of Hormuz, causing many analysts to state that fuel costs of airlines and cruise operators will also increase.
Honda (HMC) stock fell 7% before the bell today after a report on Thursday stated that the automaker expects to lose $15 billion due to scrapping its electric vehicle cars.
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Oil tankers attacked off Iraq as Middle East crisis worsens
Attacks on vessels in Gulf waters have intensified in recent days, widening the Iran conflict and dashing market hopes for a swift end to hostilities. The latest strikes on Thursday promise to further disrupt the crude supply chain and fuel further gains in oil (CL=F, BZ=F) prices.
Bloomberg reports:
Two oil tankers were hit in Iraqi waters, the latest in a string of attacks on ships in the Persian Gulf that are raising risks to global energy supply from the deepening Middle East war.
The strikes on the vessels off the coast of Iraq prompted the nation’s oil terminals to suspend operations. The latest developments point to an increase in retaliatory action from Iran, adding to pessimism that the conflict will persist for longer.
… Iraq’s State Organization for Marketing of Oil, or SOMO, said the tankers hit in its territorial waters were the Marshall Islands-flagged Safesea Vishnu and the Malta-flagged Zefyros. The country stopped operations at its oil terminals, according to comments from the director of the General Company for Ports of Iraq, carried by Iraqi News agency.
Ships were also ordered to leave the Mina Al Fahal oil terminal in Oman as a precautionary measure. The port was reopened after several hours, with operations and loadings now continuing as usual, according to an emailed statement from the Gulf Mercantile Exchange.
Still, the evacuation at Mina Al Fahal, which sits outside of the Strait of Hormuz, shows how the conflict is expanding to threaten the few ports from which Middle Eastern oil can still be shipped.
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Bumble stock rockets more than 20% higher on earnings beat
Bumble (BMBL) stock soared 20% aduring premarket hours on Thursday after the dating app operator reported better-than-expected first quarter revenue guidance as well as fourth quarter revenue and earnings beats.
For Q1, Bumble expects revenue of $209 million to $213 million, with a midpoint above analyst estimates of $210 million, according to S&P Global Market Intelligence.
Reuters reports that Bumble is beginning to see early benefits from its turnaround plan:
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Bitcoin falls as oil surges with investors seeking to reduce risk exposure
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Oil surges on Iraq port closure despite IEA reserve release
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Atlassian cuts 10% of staff on AI changes, spikes after-hours before paring gains
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