Stocks slip, oil prices nudge back up with Middle East truce in doubt

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FILE-Financial news is displayed on a television as traders work on the floor of the New York Stock Exchange during morning trading on April 02, 2026 in New York City. (Photo by Michael M. Santiago/Getty Images)

Stocks slumped, and oil prices moved back near $100 Thursday amid uncertainty surrounding a Middle East truce as the Iran war continues. 

Reuters reported that Brent Crude oil futures, the global benchmark for oil pricing, increased 3.5% to $98 a barrel, U.S. WTI futures jumped 4.6% to $98.88, Wall Street futures were down ​and the pan-European STOXX 600 index was 0.5% lower having seen its largest single-day gain on Wednesday when it jumped 3.7%.

RELATED: Latest in Iran: Ceasefire begins to unravel, Trump promises troops will remain in the region

The Associated Press reported Wednesday that the S&P 500 leaped 2.5% after President Donald Trump announced a two-week ceasefire with Iran. Meanwhile, the Dow Jones Industrial Average rallied 1,325 points, or 2.8%, and the Nasdaq composite jumped 2.8% after larger gains in European and Asian stock markets.

Both Iran and the United States have declared victory with the announcement of the ceasefire but pressure from either side continues. Trump posted to Truth Social early Thursday saying that military personnel and equipment will stay in the region.

The AP noted that the U.S. has maintained that the ceasefire must include the reopening of the Strait of Hormuz and the removal of Iran's stockpile of enriched uranium.

Could the Iran war affect potential inflation in the U.S.?

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Reuters reported that oil prices are still hovering around 40% higher than before the start of the Iran war, and an inflationary ​surge is likely to show up in data worldwide.

The PCE index of U.S. core prices for February, published ahead of the Wall Street open, increased 2.8% annually and 3%, ‌not including food and energy factors. Reuters noted that the index is the Federal Reserve’s preferred inflation measurement. This data aligns with economists' predictions, but a separate report showed the U.S. economy rose 0.5% in the fourth quarter compared with estimated growth of 0.7%.

According to Reuters, the Federal Reserve's last policy meeting on Wednesday showed a rising number of members felt a rate hike might be needed to contain inflation, though many hoped ​the next move would still be a cut.