But such moves are short-term fixes, and they do not clear the long-term risks. Analysts have said that if the Strait of Hormuz remains closed, oil prices could jump to $150.
What’s made this jump for oil prices frightening is not only the degree — prices jumped near $120 earlier this week to their highest level since 2022 — but that they’re also occurring during an uncertain time for the economy.
Dollar General, meanwhile, reported better profit and revenue for the latest quarter than analysts expected. But the retailer with relatively low prices, whose customers often have the least cushion to absorb higher gasoline prices, gave forecasts for revenue this upcoming year that indicated a potential slowdown in growth. Its stock fell 4.4%.
Some of Wall Street’s worst losses again hit companies with big fuel bills. Cruise-ship operator Carnival fell 6.2%, and United Airlines sank 3.8%.
Worries about the private-credit industry continued to hurt the market. Investors have been rushing to pull money out of some funds and companies that have lent to businesses whose profits are potentially under threat. Many of the worries are focused on business that could be made obsolete by new AI-powered rivals and may not pay back their loans.
Morgan Stanley fell 3.9% after its North Haven Private Income Fund said it allowed investors to redeem only 5% of its total shares instead of the nearly 11% they had requested. That 5% cap is the advertised limit.
In stock markets abroad, indexes fell across Europe and Asia.
Japan’s Nikkei 225 dropped 1%, and France’s CAC 40 sank 0.9% for two of the world’s bigger moves.
In the bond market, Treasury yields continued to climb because of upward pressure from rising oil prices. The yield on the 10-year Treasury rose to 4.24% from 4.21% late Wednesday and from just 3.97% before the war started.
Because of the spike for oil prices, traders have pushed back forecasts for when the Fed could resume its cuts to interest rates. President Donald Trump has been angrily calling for such cuts, which would give the economy and job market a boost but also potentially worsen inflation.
A barrel of benchmark U.S. crude rose 9.3% to $95.34.
___
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
