Oil prices rose on Thursday amid increasing concerns over a potential US-Iran conflict, as both countries ramped up military activity in the Middle East.
Brent, the global benchmark for crude, rose 1.88 per cent at 11.21am ET to $71.67 per barrel. West Texas Intermediate (WTI), which tracks US crude, increased 2.15 per cent to $66.59 per barrel. Brent neared its highest price since August after gaining more than 4 per cent on Wednesday, while WTI hit a six-month high.
The S&P 500 and Nasdaq Composite slid 0.49 per cent and 0.46 per cent.
President Donald Trump on Thursday appeared to set a 10-day deadline for Iran to strike a deal with the US on its nuclear programme, “otherwise bad things” will happen.
Mr Trump, speaking at a meeting of the Board of Peace, said “good talks are being had” and pressed Tehran to join the US on a “path to peace”.
“They can't have a nuclear weapon, it's very simple. You can't have peace in the Middle East if they have a nuclear weapon,” he said.
His remarks came after two days of Oman-mediated peace talked in Geneva. Vice President JD Vance said earlier this week that, despite some progress, distance remained between the two sides on several issues.
Mr Vance added that, despite talks, the President "still reserves the ability to say when he thinks diplomacy has reached its natural end”.
Earlier on Thursday, Iranian state media reported Iran and Russia conducted joint naval exercises in the Gulf of Oman and the Indian Ocean.
Iran has so far resisted calls from the US to end its nuclear enrichment programme. Tehran for years has sought relief from sweeping sanctions imposed by the US, and insists any deal must result in economic benefits.
Tehran issued a notice to airmen that it planned rocket launches in areas across the south of the country on Thursday from 3.30 GMT to 13.30 GMT, according to the US Federal Aviation Administration website.
On Tuesday, Iran partially closed the Strait of Hormuz, a critical transit point for oil exports. Roughly 20 per cent of the world's oil consumption passes through the strait.
At the same time, the US has boosted its military presence in the Middle East, sending two aircraft carriers to the region.
Reuters contributed to this report
