Oil prices rose to a six-month high on Thursday amid increasing concerns over a potential US-Iran conflict, as President Donald Trump gave Tehran a new deadline to reach a deal over its nuclear programme.
Brent, the global benchmark for crude, was up 2.16 per cent to $71.87 a barrel at 4pm ET. West Texas Intermediate (WTI), which tracks US crude, increased 2.41 per cent to $66.62 a barrel.
Geopolitical concerns also weighed on Wall Street investors, with the Dow Jones Industrial Average shedding 267 points, or 0.5 per cent. The S&P 500 and Nasdaq Composite both saw declines of about 0.3 per cent.
Also contributing to market movement on Thursday was a loss in private equity companies after Blue Owl Capital decided to sell $1.4 billion in assets.
Trump sets new Iran deadline
Mr Trump 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.
He told the inaugural meeting of his Board of Peace that “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,” Mr Trump said.
His remarks came after two days of Oman-mediated peace talks in Geneva. US Vice President JD Vance said this week that, despite some progress, distance remained between the two sides on several issues.
Mr Vance added that, despite talks, Mr Trump "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 aviators 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 partly closed the Strait of Hormuz, a critical transit point for oil exports. About 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 and their strike groups to the region.
Reuters contributed to this report
