Shares of energy companies rose despite a sharp drop in oil futures.
U.S.-traded crude-oil contracts fell 3.1% to $93.04 a barrel, falling by the largest increment in more than a week after President Trump reportedly revealed the red line that Iran would have to pass for war to resume, telling aides that he would consider ending the ceasefire if Tehran killed American troops.
Strategists are divided on the likelihood that the Strait of Hormuz will reopen before a painful reckoning on global supplies. Strategists at commodities trading firm Trafigura warned that, while energy prices remain relatively contained for now, markets are at an "inflection point" as major economies are close to burning through the global oil surplus that existed at the war's onset.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-04-26 1747ET
